The Nations third largest oil co, SURGED 89 PERCENT!!

October 27, 2005

Wed Oct 26, 3:37 PM ET

HOUSTON - ConocoPhillips, the nation's third-largest integrated oil and gas

company, said Wednesday its third-quarter profit surged 89 percent,

reflecting strong prices for crude oil and natural gas.

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Earnings for the quarter ended Sept. 30 rose to $3.8 billion, or $2.68 per

share, topping the average Wall Street estimate of $2.57 per share,

according to a Thomson Financial survey of analysts. A year ago, the company

earned $2 billion, or $1.43 per share.

Quarterly revenue rose 43 percent to $49.66 billion from $34.74 billion

" During the quarter, our U.S. Gulf Coast operations were significantly

impacted by Hurricanes Katrina, Rita and Dennis, " said Jim Mulva, chairman

and chief executive. " Despite these impacts, our overall operating

performance for the quarter was good, and we continued to benefit from the

strong commodity price environment. "

The Houston-based company produced 1.79 million barrels of oil equivalent,

or BOE, per day, including 1.52 million BOE per day from the exploration and

production segment and an estimated 270,000 BOE per day from its Lukoil

Investment segment.

During the quarter, ConocoPhillips generated $6.1 billion in cash from

operations, spent $3.6 billion in capital projects and investments and

reduced debt by $516 million.

Corporate expenses from continuing operations rose 16 percent to $242

million from $209 million last year, reflecting $42 million in after-tax

premiums incurred on the early retirement of debt, negative foreign exchange

impacts and increased benefit-related charges, partially offset by lower net

interest expense.

The company said it expects its Lake Charles, La., refinery, which has been

shut down since September, to return to normal operations by next week.

ConocoPhillips forecast higher production in the fourth quarter and expects

full-year daily BOE production to average about the same as 2004, excluding

Lukoil.

Shares of the company rose 20 cents to $62.64 in early trading on the

*New York Stock

The stock has traded in a 52-week range between $41.08 and $71.48.

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