ConocoPhillips said on March 31 it expects output and prices in the first quarter to be higher than the previous quarter as the oil industry recovers from one of its worst ever downturns last year when the COVID-19 pandemic hampered demand.

The top independent U.S. oil producer forecast production of 1.47 million barrels of oil equivalent per day (MMboe/d) to 1.49 MMboe/d, which included an about 50,000 boe/d hit from the cold storm that swept Texas in February.

Average prices were expected to be $43 to $45 per barrel of oil equivalent for the first quarter, much higher than the $33.21 it earned in the last three months of 2020.

The company, which reiterated its annual output forecast as well as budget, said it expects to take $600 million in charges in the first quarter related to its acquisition of Concho Resources Inc. and from commodity hedging positions.