NEW YORK — ConocoPhillips said Wednesday that net income fell 33 percent in the second quarter as it shed assets and sold oil and natural gas at lower prices.
Its results beat Wall Street estimates, but analysts said they’re concerned that the company hasn’t cut back on spending in response to the drop in revenues. Shares fell 2.6 percent Wednesday.
Chairman and CEO Ryan Lance said his company should spend about US$16 billion this year on exploration, production and other projects. Lance, who took over ConocoPhillips from Jim Mulva in the second quarter, said it’s important to keep investing in the future even though commodity prices have dropped.
“For this reason we do not think it is prudent to reduce our capital spending at this time,” Lance said in a conference call.
The company said crude prices dropped by 6.5 percent while natural gas fell by 19.8 percent in the second quarter, when compared with the same period last year. Prices for other liquid hydrocarbons such as natural gas liquids and bitumen fell during the quarter as well.