ConocoPhillips has 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.

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.

KeyFacts Energy: ConocoPhillips US country profile