Oct. 28, 2009 (Baystreet.ca) --

Oil producer ConocoPhillips (COP) said Wednesday that its third quarter profit plunged 71% from last year, as sluggish oil demand and sharply lower selling prices put a damper on earnings results.

The Houston-based company posted third quarter net income of $1.5 billion, or $1 per share, down from $5.2 billion, or $3.39 per share, in the year-ago period. Revenue plummeted 42% from last year, to $41.3 billion.

On average, Wall Street analysts expected a lower profit of 95 cents per share.

CEO Jim Mulva said in a statement that "Although we operated well, we were adversely impacted by low North American natural gas prices and worldwide refining margins, which led us to curtail approximately 300 million cubic feet a day of natural gas production starting in late August and reduce refinery runs."

ConocoPhillips shares fell 45 cents, or -0.9%, in morning trading Wednesday.

The Bottom Line We began recommending shares of COP back on Oct.7, when the stock was trading at $48.41. The company has a dividend yield of 3.89%, based on last night's closing stock price of $51.40. ConocoPhillips (COP) is a "recommended" dividend stock, holding a Dividend.com DARS Rating of 3.5 out of 5 stars.