- Completed the acquisition of Marathon Oil, adding high-quality, low cost of supply inventory adjacent to the company’s leading U.S. unconventional position.
- Reported fourth-quarter 2024 earnings per share of $1.90 and adjusted earnings per share of $1.98.
- Delivered 2024 preliminary reserve replacement ratio of 244% and preliminary organic reserve replacement ratio of 123%.
- Announced planned 2025 return of capital target of $10 billion at current commodity prices and declared first-quarter 2025 ordinary dividend of $0.78 per share.
- Provided 2025 guidance including full-year capital of approximately $12.9 billion.
ConocoPhillips has reported fourth-quarter 2024 earnings of $2.3 billion, or $1.90 per share, compared with fourth-quarter 2023 earnings of $3.0 billion, or $2.52 per share. Excluding special items, fourth-quarter 2024 adjusted earnings were $2.4 billion, or $1.98 per share, compared with fourth-quarter 2023 adjusted earnings of $2.9 billion, or $2.40 per share. Special items for the current quarter were primarily due to transaction and integration expenses largely offset by a tax benefit, both resulting from the acquisition of Marathon Oil, and debt transaction-related expenses.
Full-year 2024 earnings were $9.2 billion, or $7.81 per share, compared with full-year 2023 earnings of $11.0 billion, or $9.06 per share. Excluding special items, full-year 2024 adjusted earnings were $9.2 billion or $7.79 per share, compared with full-year 2023 adjusted earnings of $10.6 billion, or $8.77 per share.
'ConocoPhillips continued to deliver on our returns-focused value proposition in 2024, demonstrating strong operational execution, returning $9.1 billion to shareholders and enhancing our portfolio with the acquisition of Marathon Oil,' said Ryan Lance, chairman and chief executive officer. 'Looking ahead, we are focused on achieving more than $1 billion in integration-related run rate synergies by year-end, over half of which is already reflected in our announced capital guidance. We are starting the year with a $10 billion return of capital target.'
Full-year summary and recent announcements
- Generated cash provided by operating activities of $20.1 billion and cash from operations (CFO) of $20.3 billion.
- Distributed $9.1 billion to shareholders, including $5.5 billion through share repurchases and $3.6 billion through the ordinary dividend and variable return of cash (VROC).
- Ended the year with cash and short-term investments of $6.4 billion and long-term investments of $1.1 billion.
- Achieved 14% return on capital employed; 15% cash-adjusted return on capital employed.
- Advanced previously announced $2 billion disposition target by signing agreements to divest noncore Lower 48 assets of $0.6 billion, subject to customary closing adjustments and expected to close in the first half of 2025.
- Delivered full-year total company and Lower 48 production of 1,987 thousand barrels of oil equivalent per day (MBOED) and 1,152 MBOED, respectively. Excluding one month of Marathon Oil production, the company and Lower 48 produced 1,955 MBOED and 1,124 MBOED, respectively.
- Reached first production at Nuna in Alaska and Bohai Phase 5 in China in the fourth quarter and at Eldfisk North in Norway in the second quarter.
- Progressed global LNG strategy with a long-term regasification agreement at Zeebrugge LNG terminal in Belgium and a long-term LNG sales agreement in Asia.
- Exercised preferential rights and acquired additional working interests in Alaska’s Kuparuk River and Prudhoe Bay Units in the fourth quarter.
- Completed debt transactions to simplify the company’s capital structure post the acquisition of Marathon Oil, extending the weighted average maturity and improving the weighted average coupon of the portfolio.
- Achieved the Oil and Gas Methane Partnership 2.0 Gold Standard designation in 2024.
Return of capital update
ConocoPhillips announced its planned 2025 return of capital to shareholders of $10 billion. The company declared a first-quarter ordinary dividend of $0.78 per share payable March 3, 2025, to stockholders of record at the close of business on Feb. 17, 2025.
Fourth-quarter review
Production for the fourth quarter of 2024 was 2,183 MBOED, an increase of 281 MBOED from the same period a year ago. After adjusting for impacts from closed acquisitions and dispositions, fourth-quarter 2024 production increased 139 MBOED or 6% from the same period a year ago.
Lower 48 delivered production of 1,308 MBOED, including 833 MBOED from the Permian, 296 MBOED from the Eagle Ford and 151 MBOED from the Bakken.
Earnings decreased from the fourth quarter of 2023 as higher volumes were more than offset by nonrecurring acquisition-related transaction and integration expenses, lower prices and higher depreciation, depletion and amortization (DD&A). Adjusted earnings decreased as higher volumes were more than offset by lower prices, higher DD&A and increased operating costs.
The company’s total average realized price was $52.37 per BOE, 10% lower than the $58.21 per BOE realized in the fourth quarter of 2023.
For the fourth quarter, cash provided by operating activities was approximately $4.5 billion. Excluding a $1.0 billion change in working capital, ConocoPhillips generated CFO of over $5.4 billion. The company funded $3.3 billion of capital expenditures and investments inclusive of $0.4 billion of spend related to fourth-quarter acquisitions, repurchased $2.0 billion of shares and paid $0.9 billion in ordinary dividends. In addition, the company completed strategic debt transactions and repaid naturally maturing debt, resulting in net cash proceeds of $1.2 billion.
Full-year review
Production for 2024 was 1,987 MBOED, an increase of 161 MBOED from the same period a year ago. After adjusting for impacts from closed acquisitions and dispositions, production increased 69 MBOED or 3% from the same period a year ago.
The company’s total average realized price during this period was $54.83 per BOE, 6% lower than the $58.39 per BOE realized in 2023.
In 2024, cash provided by operating activities was $20.1 billion. Excluding a $0.2 billion change in working capital, ConocoPhillips generated CFO of $20.3 billion and received disposition proceeds of $0.3 billion. The company funded $12.1 billion in capital expenditures and investments inclusive of $0.4 billion of spend related to fourth-quarter acquisitions, repurchased shares of $5.5 billion and paid $3.6 billion in ordinary dividends and VROC. In addition, the company completed strategic debt transactions and repaid naturally maturing debt, resulting in net cash proceeds of $0.6 billion.
Reserves update
Preliminary 2024 year-end proved reserves are 7.8 billion barrels of oil equivalent (BBOE), with a preliminary reserve replacement ratio of 244%. Excluding closed acquisitions and dispositions, the preliminary organic reserve replacement ratio was 123%.
Final information related to the company’s 2024 oil and gas reserves will be provided in ConocoPhillips’ Annual Report on Form 10-K, to be filed with the SEC in February.
Outlook
The company’s 2025 production guidance is 2.34 to 2.38 million barrels of oil equivalent per day (MMBOED), which includes impacts of 20 MBOED from planned turnarounds. First-quarter 2025 production is expected to be 2.34 to 2.38 MMBOED, which includes impacts of 20 MBOED from January weather and 5 MBOED from turnarounds.
Guidance for 2025 includes capital expenditures of approximately $12.9 billion, adjusted operating costs of $10.9 to $11.1 billion, DD&A of $11.3 to $11.5 billion and adjusted corporate segment net loss of approximately $1.1 billion. Guidance excludes special items.
Source: ConocoPhillips
