(By Balachander S) ConocoPhillips (NYSE:COP) shares dropped 2.35 percent in premarket trading on Monday after the oil company's quarterly earnings trailed market expectations amid drop in production volumes and refining margins.
On an adjusted basis, earnings were $2.6 billion or $2.02 per share for the first quarter, compared with $2.6 billion or $1.82 per share in the year-ago quarter. Analysts' expected COP to earn $2.08 a share.
Net earnings were $2.9 billion or $2.27 per share, compared with $3.0 billion or $2.09 per share last year. Quarterly results included gains from asset sales of $987 million and noncash impairments of $562 million.
Production was 1.64 million barrels of oil equivalent (BOE) per day, down 65,000 BOE per day from the year-ago period and COP expects second- and third-quarter production to be impacted by major turnarounds, scheduled maintenance, seasonality and dispositions.
For 2012, the company expects production to be 1.55-1.60 million BOE per day.
The stock, which has been trading between $58.65 and $81.50 over the past year, closed Friday's regular trading at $72.88.