ConocoPhillips said it now expects Q4 production to exceed Q3 production by 60,000 barrels of equivalent oil, to about 1.86 million barrels of equivalent oil, the company announced Thursday in a statement.

Conoco (NYSE: COP) also said it expects both Q4 crude oil and U.S. natural gas prices to be higher on a sequential basis. Conoco's shares gained 82 cents to $88.71 on the news in Thursday afternoon trading.

The company said it also expects an after-tax negative impact of about $250 million for Alaska's new production tax. About $100 million of that amount is for the 2006 and 2007 periods. Conoco said it also expects a $350 million revenue gain stemming from Canada's tax-rate reduction act and the release of specific escrow funds.

ConocoPhillips also expects domestic refining and marketing margins to decrease slightly in Q4, offset by a higher, average, worldwide crude oil refining capacity utilization rate.

Stock Analysis: First recommended in this space in October 2007 at about $85, ConocoPhillips is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon of at least one year who need an integrated oil stock / energy stock should benefit from COP's shares. Sell / Stop Loss if you were to purchase shares in this company: $58.

DISCLOSURE: Joseph Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.