Conoco shares rise on higher Q4 production guidance

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.