Higher oil and natural gas prices coupled with production from new Alaska properties helped boost second quarter earnings almost sevenfold for Phillips Petroleum, helping the company easily surpass Wall Street's expectations.
The Bartlesville, Okla.-based company reported net income of $442 million, or $1.74 per share, in the second quarter compared with $68 million, or 27 cents per share, for the same quarter of 1999.
Excluding one-time items, the company earned $1.72 per share, well above the $1.56 per share predicted by analysts surveyed by First Call/Thomson Financial.
Revenues jumped from $3.2 billion for the second quarter last year to $5.4 billion.
For the first half of the year, Phillips posted net earnings of $692 million, or $2.73 a share, compared with $138 million, or 55 cents a share, for the first six months of 1999.
Phillips closed its acquisition in April of Alaska oil and gas fields from Atlantic Richfield Co. as that company was bought by BP.
The Alaska purchase boosted crude oil production 74 percent from the first quarter and doubled Phillips' worldwide reserves, said company chief executive Jim Mulva.
Phillips' bottom line also benefitted from higher oil and natural prices, stronger operations in Norway and improved performances in the refining, marketing and transportation and chemicals businesses, Mulva said.
Shares of Phillips rose $1.875 to $49.25 in trading on the New York Stock Exchange Thursday.
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