- Reported third-quarter 2024 earnings per share of $1.76 and adjusted earnings per share of $1.78.
- Generated cash provided by operating activities of $5.8 billion and cash from operations (CFO) of $4.7 billion.
- Raised ordinary dividend by 34% to $0.78 per share and increased existing share repurchase authorization by up to $20 billion.
ConocoPhillips has reported third-quarter 2024 earnings of $2.1 billion, or $1.76 per share, compared with third-quarter 2023 earnings of $2.8 billion, or $2.32 per share. Excluding special items, third-quarter 2024 adjusted earnings were $2.1 billion, or $1.78 per share, compared with third-quarter 2023 adjusted earnings of $2.6 billion, or $2.16 per share.
'ConocoPhillips continues to demonstrate strong operational performance, surpassing the high end of our production guidance during the quarter, while executing on our returns-focused value proposition. We are also raising our ordinary dividend, increasing our share repurchase authorization and are on track to distribute at least $9 billion to shareholders for 2024,' said Ryan Lance, chairman and chief executive officer. 'We still anticipate closing the planned acquisition of Marathon Oil this quarter and expect to significantly exceed our initial $500 million synergy guidance.'
Third-quarter highlights and recent announcements
- Delivered total company production of 1,917 thousand barrels of oil equivalent per day (MBOED).
- Achieved record Lower 48 production of 1,147 MBOED, including 781 MBOED from the Permian, 246 MBOED from the Eagle Ford and 107 MBOED from the Bakken.
- Successfully completed planned turnarounds, primarily in Canada and the Lower 48.
- Exercised preferential rights and signed an agreement to acquire additional working interests in the Kuparuk River and Prudhoe Bay units in Alaska for approximately $300 million, with expected close by year-end, subject to customary closing conditions.
- Distributed $2.1 billion to shareholders, including $1.2 billion through share repurchases and $0.9 billion through the ordinary dividend and variable return of cash (VROC).
- Ended the quarter with cash and short-term investments of $7.1 billion and long-term investments of $1.0 billion.
Quarterly dividend and share repurchase authorization increase
ConocoPhillips declared a fourth-quarter ordinary dividend of $0.78 per share payable Dec. 2, 2024, to stockholders of record at the close of business on Nov. 11, 2024.
The Board of Directors approved an increase to the company’s existing share repurchase authorization by up to $20 billion.
Third-quarter review
Production for the third quarter of 2024 was 1,917 MBOED, an increase of 111 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions, third-quarter 2024 production increased 47 MBOED or 3% from the same period a year ago.
Earnings and adjusted earnings decreased from the third quarter of 2023 primarily due to the impact from lower prices. The company’s total average realized price was $54.18 per BOE, 10% lower than the $60.05 per BOE realized in the third quarter of 2023.
For the quarter, cash provided by operating activities was $5.8 billion. Excluding a $1.0 billion change in working capital, ConocoPhillips generated CFO of over $4.7 billion. The company funded $2.9 billion of capital expenditures and investments, repurchased $1.2 billion of shares and paid $0.9 billion in ordinary dividends and VROC.
Nine-month review
ConocoPhillips’ nine-month 2024 earnings were $6.9 billion, or $5.91 per share, compared with nine-month 2023 earnings of $8.0 billion, or $6.54 per share. Nine-month 2024 adjusted earnings were $6.8 billion, or $5.80 per share, compared with nine-month 2023 adjusted earnings of $7.8 billion, or $6.38 per share.
Production for the first nine months of 2024 was 1,921 MBOED, an increase of 120 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions, production increased 55 MBOED or 3% from the same period a year ago.
The company’s total realized price during this period was $55.77 per BOE, 5% lower than the $58.45 per BOE realized in the first nine months of 2023.
In the first nine months of 2024, cash provided by operating activities was $15.7 billion. Excluding a $0.8 billion change in working capital, ConocoPhillips generated CFO of $14.9 billion and received disposition proceeds of
$0.2 billion. The company funded $8.8 billion of capital expenditures and investments, repurchased $3.5 billion of shares, paid $2.7 billion in ordinary dividends and VROC and retired debt of $0.5 billion at maturity.
Outlook
Fourth-quarter 2024 production is expected to be 1.99 to 2.03 million barrels of oil equivalent per day (MMBOED). Full-year production is expected to be approximately 1.94 to 1.95 MMBOED, as compared to prior guidance of 1.93 to 1.94 MMBOED.
All other guidance remains unchanged. Guidance excludes any impact from previously announced transactions.
Source: ConocoPhillips
