- Reported second-quarter 2024 earnings per share and adjusted
earnings per share of $1.98.
- Generated cash provided by operating activities of $4.9 billion
and cash from operations (CFO) of $5.1 billion.
- Declared ordinary dividend of $0.58 per share and variable
return of cash (VROC) of $0.20 per share payable in the third
quarter.
ConocoPhillips (NYSE: COP) today reported second-quarter 2024
earnings and adjusted earnings of $2.3 billion, or $1.98 per share,
compared with second-quarter 2023 earnings and adjusted earnings of
$2.2 billion, or $1.84 per share.
“In the second quarter, we continued to deliver on our
returns-focused value proposition, achieving record production and
advancing our global LNG strategy. We announced a 34% increase in
our ordinary dividend starting in the fourth quarter and remain
committed to returning at least $9 billion of capital for 2024,”
said Ryan Lance, chairman and chief executive officer. “Our
previously announced plan to acquire Marathon Oil is progressing,
and we expect to close late in the fourth quarter.”
Second-quarter highlights and recent
announcements
- Announced agreement to acquire Marathon Oil in an all-stock
transaction.
- Delivered total company and Lower 48 production of 1,945
thousand barrels of oil equivalent per day (MBOED) and 1,105 MBOED,
respectively.
- Reached first production ahead of schedule at Eldfisk North in
Norway.
- Achieved significant milestones at Willow with arrival of
Operations Center modules in Alaska and commencement of the Central
Facility fabrication earlier than planned.
- Advanced global LNG strategy by signing a long-term
regasification agreement at Zeebrugge LNG terminal in Belgium and a
long-term LNG sales agreement in Asia, both commencing in
2027.
- Distributed $1.9 billion to shareholders, including $1.0
billion through share repurchases and $0.9 billion through the
ordinary dividend and VROC.
- Ended the quarter with cash and short-term investments of $6.3
billion and long-term investments of $1.0 billion.
Quarterly dividend and variable return
of cash
ConocoPhillips declared a third-quarter ordinary dividend of
$0.58 per share and a VROC of $0.20 per share, both payable Sept.
3, 2024, to stockholders of record at the close of business on Aug.
12, 2024.
In May, ConocoPhillips announced plans to increase the ordinary
dividend by 34% to $0.78 per share starting in the fourth quarter
of 2024. This will incorporate the current VROC of $0.20 per share
into the ordinary dividend.
Second-quarter review
Production for the second quarter of 2024 was 1,945 MBOED, an
increase of 140 MBOED from the same period a year ago. After
adjusting for closed acquisitions and dispositions, second-quarter
2024 production increased 76 MBOED or 4% from the same period a
year ago.
Lower 48 delivered production of 1,105 MBOED, including 748
MBOED from the Permian, 238 MBOED from the Eagle Ford and 105 MBOED
from the Bakken.
Earnings and adjusted earnings increased from the second quarter
of 2023. The quarter benefited from higher average realized prices,
despite weaker Lower 48 gas realizations, and higher volumes. These
increases were partially offset by higher depreciation, depletion
and amortization and higher operating costs. The company’s total
average realized price was $56.56 per BOE, 4% higher than the
$54.50 per BOE realized in the second quarter of 2023.
For the quarter, cash provided by operating activities was $4.9
billion. Excluding a $0.1 billion change in working capital,
ConocoPhillips generated CFO of approximately $5.1 billion. The
company funded $3.0 billion of capital expenditures and
investments, repurchased $1.0 billion of shares and paid $0.9
billion in ordinary dividends and VROC.
Six-month review
ConocoPhillips’ six-month 2024 earnings were $4.9 billion, or
$4.14 per share, compared with six-month 2023 earnings of $5.2
billion, or $4.22 per share. Six-month 2024 adjusted earnings were
$4.7 billion, or $4.02 per share, compared with six-month 2023
adjusted earnings of $5.2 billion, or $4.22 per share.
Production for the first six months of 2024 was 1,923 MBOED, an
increase of 125 MBOED from the same period a year ago. After
adjusting for closed acquisitions and dispositions, production
increased 60 MBOED or 3% from the same period a year ago.
The company’s total realized price during this period was $56.58
per BOE, 2% lower than the $57.63 per BOE realized in the first six
months of 2023.
In the first six months of 2024, cash provided by operating
activities was $9.9 billion. Excluding a $0.3 billion change in
working capital, ConocoPhillips generated CFO of $10.2 billion and
received disposition proceeds of $0.2 billion. The company funded
$5.9 billion of capital expenditures and investments, repurchased
$2.3 billion of shares and paid $1.8 billion in ordinary dividends
and VROC and retired debt of $0.5 billion at maturity.
Outlook
Third-quarter 2024 production is expected to be 1.87 to 1.91
million barrels of oil equivalent per day (MMBOED), inclusive of
approximately 90 MBOED of turnaround impacts in Canada, Lower 48,
Alaska, Norway, Malaysia and Qatar. Full-year production is
expected to be approximately 1.93 to 1.94 MMBOED, as compared to
prior guidance of 1.91 to 1.95 MMBOED, reflecting strong
second-quarter results.
Full-year guidance for adjusted corporate segment net loss is
lowered to $0.8 to $0.9 billion from prior guidance of $1.0 to $1.1
billion, and full-year depreciation, depletion and amortization
guidance is lowered to $9.3 to $9.4 billion versus prior guidance
of $9.4 to $9.6 billion. This is partially offset by increased
adjusted operating cost guidance of $9.2 to $9.3 billion versus
prior guidance of $8.9 to $9.1 billion, primarily due to increased
transportation and processing costs and inflationary pressures in
the Lower 48.
Full-year capital expenditures guidance is updated to
approximately $11.5 billion versus prior range of $11.0 to $11.5
billion, due to strong progress on Willow and increased Lower 48
partner-operated activity.
ConocoPhillips will host a conference call today at 12:00 p.m.
Eastern time to discuss this announcement. To listen to the call
and view related presentation materials and supplemental
information, go to www.conocophillips.com/investor. A recording and
transcript of the call will be posted afterward.
--- # # # ---
About ConocoPhillips
ConocoPhillips is one of the world’s leading exploration and
production companies based on both production and reserves, with a
globally diversified asset portfolio. Headquartered in Houston,
Texas, ConocoPhillips had operations and activities in 13
countries, $96 billion of total assets, and approximately 10,200
employees at June 30, 2024. Production averaged 1,923 MBOED for the
six months ended June 30, 2024, and proved reserves were 6.8 BBOE
as of Dec. 31, 2023.
For more information, go to www.conocophillips.com.
CAUTIONARY STATEMENT FOR THE PURPOSES
OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF
1995
This news release contains forward-looking statements as defined
under the federal securities laws. Forward-looking statements
relate to future events, plans and anticipated results of
operations, business strategies, and other aspects of our
operations or operating results. Words and phrases such as
“ambition,” “anticipate,” “estimate,” “believe,” “budget,”
“continue,” “could,” “intend,” “may,” “plan,” “potential,”
“predict,” “seek,” “should,” “will,” “would,” “expect,”
“objective,” “projection,” “forecast,” “goal,” “guidance,”
“outlook,” “effort,” “target” and other similar words can be used
to identify forward-looking statements. However, the absence of
these words does not mean that the statements are not
forward-looking. Where, in any forward-looking statement, the
company expresses an expectation or belief as to future results,
such expectation or belief is expressed in good faith and believed
to be reasonable at the time such forward-looking statement is
made. However, these statements are not guarantees of future
performance and involve certain risks, uncertainties and other
factors beyond our control. Therefore, actual outcomes and results
may differ materially from what is expressed or forecast in the
forward-looking statements. Factors that could cause actual results
or events to differ materially from what is presented include
changes in commodity prices, including a prolonged decline in these
prices relative to historical or future expected levels; global and
regional changes in the demand, supply, prices, differentials or
other market conditions affecting oil and gas, including changes
resulting from any ongoing military conflict, including the
conflicts in Ukraine and the Middle East, and the global response
to such conflict, security threats on facilities and
infrastructure, or from a public health crisis or from the
imposition or lifting of crude oil production quotas or other
actions that might be imposed by OPEC and other producing countries
and the resulting company or third-party actions in response to
such changes; insufficient liquidity or other factors, such as
those listed herein, that could impact our ability to repurchase
shares and declare and pay dividends such that we suspend our share
repurchase program and reduce, suspend, or totally eliminate
dividend payments in the future, whether variable or fixed; changes
in expected levels of oil and gas reserves or production; potential
failures or delays in achieving expected reserve or production
levels from existing and future oil and gas developments, including
due to operating hazards, drilling risks or unsuccessful
exploratory activities; unexpected cost increases, inflationary
pressures or technical difficulties in constructing, maintaining or
modifying company facilities; legislative and regulatory
initiatives addressing global climate change or other environmental
concerns; public health crises, including pandemics (such as
COVID-19) and epidemics and any impacts or related company or
government policies or actions; investment in and development of
competing or alternative energy sources; potential failures or
delays in delivering on our current or future low-carbon strategy,
including our inability to develop new technologies; disruptions or
interruptions impacting the transportation for our oil and gas
production; international monetary conditions and exchange rate
fluctuations; changes in international trade relationships or
governmental policies, including the imposition of price caps, or
the imposition of trade restrictions or tariffs on any materials or
products (such as aluminum and steel) used in the operation of our
business, including any sanctions imposed as a result of any
ongoing military conflict, including the conflicts in Ukraine and
the Middle East; our ability to collect payments when due,
including our ability to collect payments from the government of
Venezuela or PDVSA; our ability to complete the proposed
acquisition of Marathon Oil Corporation (Marathon Oil) or any other
announced or any other future dispositions or acquisitions on time,
if at all; the possibility that regulatory approvals, consents or
authorizations for the Marathon Oil acquisition or any other
announced or any other future dispositions or acquisitions will not
be received on a timely basis, if at all, or that such approvals
may be subject to conditions neither we nor Marathon Oil
anticipated or may require modification to the terms of the
transactions or our remaining business; business disruptions
relating to the Marathon Oil acquisition or following any other
announced or other future dispositions or acquisitions, including
the diversion of management time and attention; the ability to
deploy net proceeds from our announced or any future dispositions
in the manner and timeframe we anticipate, if at all; the receipt
of other requisite approvals for the Marathon Oil acquisition,
including the approval of Marathon Oil stockholders, the
satisfaction of other closing conditions on a timely basis or at
all or the failure of the Marathon Oil acquisition to close for any
other reason or to close on anticipated terms; our ability to
successfully integrate Marathon Oil’s business and technologies,
which may result in the combined company not operating as
effectively and efficiently as expected; our ability to achieve the
expected benefits and synergies from the Marathon Oil acquisition
in a timely manner, or at all; potential liability for remedial
actions under existing or future environmental regulations;
potential liability resulting from pending or future litigation,
including litigation related directly or indirectly to our
transaction with Concho Resources Inc.; the impact of competition
and consolidation in the oil and gas industry; limited access to
capital or insurance or significantly higher cost of capital or
insurance related to illiquidity or uncertainty in the domestic or
international financial markets or investor sentiment; general
domestic and international economic and political conditions or
developments, including as a result of any ongoing military
conflict, including the conflicts in Ukraine and the Middle East;
changes in fiscal regime or tax, environmental and other laws
applicable to our business; and disruptions resulting from
accidents, extraordinary weather events, civil unrest, political
events, war, terrorism, cybersecurity threats or information
technology failures, constraints or disruptions; and other
economic, business, competitive and/or regulatory factors affecting
our business generally as set forth in our filings with the
Securities and Exchange Commission. Unless legally required,
ConocoPhillips expressly disclaims any obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Cautionary Note to U.S. Investors – The SEC permits oil
and gas companies, in their filings with the SEC, to disclose only
proved, probable and possible reserves. We may use the term
“resource” in this news release that the SEC’s guidelines prohibit
us from including in filings with the SEC. U.S. investors are urged
to consider closely the oil and gas disclosures in our Form 10-K
and other reports and filings with the SEC. Copies are available
from the SEC and from the ConocoPhillips website.
Use of Non-GAAP Financial Information – To supplement the
presentation of the company’s financial results prepared in
accordance with U.S. generally accepted accounting principles
(GAAP), this news release and the accompanying supplemental
financial information contain certain financial measures that are
not prepared in accordance with GAAP, including adjusted earnings
(calculated on a consolidated and on a segment-level basis),
adjusted earnings per share (EPS), cash from operations (CFO),
adjusted corporate segment net loss and adjusted operating
costs.
The company believes that the non-GAAP measure adjusted earnings
(both on an aggregate and a per-share basis) is useful to investors
to help facilitate comparisons of the company’s operating
performance associated with the company’s core business operations
across periods on a consistent basis and with the performance and
cost structures of peer companies by excluding items that do not
directly relate to the company’s core business operations. Adjusted
earnings is defined as earnings removing the impact of special
items.
Adjusted EPS is a measure of the company’s diluted net earnings
per share excluding special items. The company further believes
that the non-GAAP measure CFO is useful to investors to help
understand changes in cash provided by operating activities
excluding the timing effects associated with operating working
capital changes across periods on a consistent basis and with the
performance of peer companies. Adjusted corporate segment net loss
is defined as corporate and other segment earnings adjusted for
special items.
Adjusted operating costs is defined as the sum of production and
operating expenses and selling, general and administrative
expenses, adjusted for special items. The company believes that the
above-mentioned non-GAAP measures, when viewed in combination with
the company’s results prepared in accordance with GAAP, provides a
more complete understanding of the factors and trends affecting the
company’s business and performance. The company’s Board of
Directors and management also use these non-GAAP measures to
analyze the company’s operating performance across periods when
overseeing and managing the company’s business.
Each of the non-GAAP measures included in this news release and
the accompanying supplemental financial information has limitations
as an analytical tool and should not be considered in isolation or
as a substitute for an analysis of the company’s results calculated
in accordance with GAAP. In addition, because not all companies use
identical calculations, the company’s presentation of non-GAAP
measures in this news release and the accompanying supplemental
financial information may not be comparable to similarly titled
measures disclosed by other companies, including companies in our
industry. The company may also change the calculation of any of the
non-GAAP measures included in this news release and the
accompanying supplemental financial information from time to time
in light of its then existing operations to include other
adjustments that may impact its operations.
Reconciliations of each non-GAAP measure presented in this news
release to the most directly comparable financial measure
calculated in accordance with GAAP are included in the release.
Other Terms – This news release also contains the term pro forma
underlying production. Pro forma underlying production reflects the
impact of closed acquisitions and closed dispositions as of June
30, 2024. The impact of closed acquisitions and dispositions
assumes a closing date of January 1, 2023. The company believes
that underlying production is useful to investors to compare
production reflecting the impact of closed acquisitions and
dispositions on a consistent go-forward basis across periods and
with peer companies. Return of capital is defined as the total of
the ordinary dividend, share repurchases and variable return of
cash (VROC). References in the release to earnings refer to net
income.
ConocoPhillips Table 1: Reconciliation of earnings to
adjusted earnings $ millions, except as indicated
2Q24
2Q23
2024 YTD
2023 YTD
Pre-tax Income tax After-tax Per share of
common stock (dollars) Pre-tax Income tax
After-tax Per share of common stock (dollars)
Pre-tax Income tax After-tax Per share of
common stock (dollars) Pre-tax Income tax
After-tax Per share of common stock (dollars)
Earnings
$
2,329
1.98
2,232
1.84
4,880
4.14
5,152
4.22
Adjustments: (Gain) loss on asset sales
—
—
—
—
—
—
—
—
(86
)
20
(66
)
(0.06
)
—
—
—
—
Tax adjustments
—
—
—
—
—
—
—
—
—
(76
)
(76
)
(0.06
)
—
—
—
—
Adjusted earnings / (loss)
$
2,329
1.98
2,232
1.84
4,738
4.02
5,152
4.22
The income tax effects of the special items are primarily
calculated based on the statutory rate of the jurisdiction in which
the discrete item resides.
ConocoPhillips
Table 2: Reconciliation of net cash
provided by operating activities to cash from operations
$ millions, except as indicated
2Q24
Net Cash Provided by Operating
Activities
$
4,919
Adjustments:
Net operating working capital changes
(148
)
Cash from operations
$
5,067
ConocoPhillips
Table 3: Reconciliation of reported
production to pro forma underlying production
In MBOED, except as indicated
2Q24
2Q23
2024 YTD
2023 YTD
Total reported ConocoPhillips
production
1,945
1,805
1,923
1,798
Closed Dispositions1
—
(2
)
—
(2
)
Closed Acquisitions2
—
66
—
67
Total pro forma underlying
production
1,945
1,869
1,923
1,863
1Includes production related to various
Lower 48 dispositions.
2Includes production related to the
acquisition of remaining 50% working interest in Surmont.
ConocoPhillips
Table 4: Reconciliation of adjusted
corporate segment net loss
$ millions, except as indicated
2024 Full Year
Guidance
Corporate and other earnings
(800) - (900)
Adjustments to exclude special items:
None
—
Adjusted corporate segment net
loss
(800) - (900)
ConocoPhillips
Table 5: Reconciliation of production
and operating expenses to adjusted operating costs
$ millions, except as indicated
2024 Full Year
Guidance
Production and operating expenses
8,550 - 8,600
Selling, general and administrative
(G&A) expenses
650 - 700
Operating Costs
9,200 - 9,300
Adjustments to exclude special items:
None
—
Adjusted operating costs
9,200 - 9,300
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240730285840/en/
Dennis Nuss (media) 281-293-1149
dennis.nuss@conocophillips.com
Investor Relations 281-293-5000
investor.relations@conocophillips.com
ConocoPhillips (NYSE:COP)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
ConocoPhillips (NYSE:COP)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024