- Reported first-quarter 2024 earnings per share of $2.15 and
adjusted earnings per share of $2.03.
- Generated cash provided by operating activities of $5.0 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 second
quarter.
ConocoPhillips (NYSE: COP) today reported first-quarter 2024
earnings of $2.6 billion, or $2.15 per share, compared with
first-quarter 2023 earnings of $2.9 billion, or $2.38 per share.
Excluding special items, first-quarter 2024 adjusted earnings were
$2.4 billion, or $2.03 per share, compared with first-quarter 2023
adjusted earnings of $2.9 billion, or $2.38 per share. Special
items for the current quarter consisted of a benefit related to an
investment tax incentive and a gain on an asset sale.
“We started the year on a strong note, thanks to another quarter
of focused execution on our strategic plan,” said Ryan Lance,
chairman and chief executive officer. “We remain constructive on
the macro environment and are committed to delivering competitive
shareholder returns, including at least $9 billion in planned
return of capital for 2024.”
First-quarter highlights and recent
announcements
- Delivered total company production of 1,902 thousand barrels of
oil equivalent per day (MBOED).
- Produced 1,046 MBOED in the Lower 48, including 736 MBOED from
the Permian, 197 MBOED from the Eagle Ford and 96 MBOED from the
Bakken.
- Executed a successful first major winter construction season at
Willow in Alaska and advanced development of LNG projects in the
U.S. and Qatar.
- Continued ramp-up from recent international project startups
including Surmont Pad 267 in Canada, several sub-sea tiebacks in
Norway and Bohai Phase 4B in China.
- Progressed Montney development program following startup of the
second phase of the company’s central processing facility in
Canada, resulting in record production for the asset.
- Achieved 1,000th LNG cargo export milestone at APLNG in
April.
- Distributed $2.2 billion to shareholders through a three-tier
framework, including $1.3 billion through share repurchases and
$0.9 billion through the ordinary dividend and VROC.
- Retired debt of $0.5 billion at maturity.
- Ended the quarter with cash and short-term investments of $6.3
billion and long-term investments of $1.1 billion.
Quarterly dividend and variable return
of cash
ConocoPhillips declared an ordinary dividend of $0.58 per share
and a VROC of $0.20 per share, both payable June 3, 2024, to
stockholders of record at the close of business on May 13,
2024.
First-quarter review
Production for the first quarter of 2024 was 1,902 MBOED, an
increase of 110 MBOED from the same period a year ago. After
adjusting for closed acquisitions and dispositions, first-quarter
2024 production increased 43 MBOED or 2% from the same period a
year ago.
Earnings decreased from the first quarter of 2023 primarily due
to impacts from lower prices, higher costs, and higher
depreciation, depletion and amortization, partially offset by
increased volumes and a benefit from the investment tax incentive
special item. Excluding special items, adjusted earnings decreased
due to the same factors. The company’s total average realized price
was $56.60 per BOE, 7% lower than the $60.86 per BOE realized in
the first quarter of 2023.
For the quarter, cash provided by operating activities was $5.0
billion. Excluding a $0.1 billion change in working capital,
ConocoPhillips generated CFO of $5.1 billion and received
disposition proceeds of $0.2 billion. In addition, the company
funded $2.9 billion of capital expenditures and investments,
repurchased $1.3 billion of shares and paid $0.9 billion in
ordinary dividends and VROC and retired debt of $0.5 billion at
maturity.
Outlook
Second-quarter 2024 production is expected to be 1.91 to 1.95
million barrels of oil equivalent per day.
All full-year guidance items remain unchanged.
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, $95 billion of total assets, and approximately 10,000
employees at March 31, 2024. Production averaged 1,902 MBOED for
the three months ended March 31, 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 any announced or any
future dispositions or acquisitions on time, if at all; the
possibility that regulatory approvals for any announced or any
future dispositions or acquisitions will not be received on a
timely basis, if at all, or that such approvals may require
modification to the terms of the transactions or our remaining
business; business disruptions following any announced or 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; 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) and cash from operations
(CFO).
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. 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 March
31, 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
1Q24
1Q23
Pre-tax Income tax
After-tax Per share of commonstock(dollars)
Pre-tax Income tax After-tax Per share
ofcommonstock(dollars) Earnings
$
2,551
2.15
2,920
2.38
Adjustments:
(Gain) loss on asset sales
(86
)
20
(66
)
(0.06
)
—
—
—
—
Tax adjustments
—
(76
)
(76
)
(0.06
)
—
—
—
—
Adjusted earnings / (loss)
$
2,409
2.03
2,920
2.38
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
1Q24
Net Cash Provided by Operating Activities
4,985
Adjustments: Net operating working capital
changes
(112)
Cash from operations
5,097
ConocoPhillips
Table 3: Reconciliation of reported production to pro forma
underlying production In MBOED, except as indicated
1Q24
1Q23
Total reported ConocoPhillips production
1,902
1,792
Closed Dispositions1
—
(2)
Closed Acquisitions2
—
69
Total pro forma underlying production
1,902
1,859
1Includes production related to various Lower 48 dispositions.
2Includes production related to the acquisition of remaining 50%
working interest in Surmont.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240430444146/en/
Dennis Nuss (media) 281-293-1149
dennis.nuss@conocophillips.com
Investor Relations 281-293-5000
investor.relations@conocophillips.com
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