On August 1, 2024, ConocoPhillips (COP, Financial) released its 8-K filing detailing its second-quarter 2024 earnings. ConocoPhillips, a US-based independent exploration and production firm, reported earnings per share (EPS) of $1.98, falling short of the analyst estimate of $2.28. The company also reported quarterly revenue of $15,116.81 million, aligning with analyst expectations.
Company Overview
ConocoPhillips is a leading independent exploration and production company. In 2023, it produced 1.2 million barrels per day of oil and natural gas liquids and 3.1 billion cubic feet per day of natural gas. The company operates primarily in Alaska, the Lower 48 in the United States, Norway, and several countries in the Asia-Pacific and Middle East regions. At the end of 2023, ConocoPhillips had proven reserves of 6.8 billion barrels of oil equivalent.
Performance and Challenges
ConocoPhillips reported second-quarter 2024 earnings of $2.3 billion, or $1.98 per share, compared to $2.2 billion, or $1.84 per share, in the same period last year. Despite higher average realized prices and increased production volumes, the company faced challenges from higher depreciation, depletion, and amortization costs, as well as increased operating expenses.
“In the second quarter, we continued to deliver on our returns-focused value proposition, achieving record production and advancing our global LNG strategy,” said Ryan Lance, chairman and chief executive officer.
Financial Achievements
ConocoPhillips generated $4.9 billion in cash from operating activities and $5.1 billion in cash from operations (CFO) for the quarter. The company declared an ordinary dividend of $0.58 per share and a variable return of cash (VROC) of $0.20 per share, payable in the third quarter. Additionally, ConocoPhillips announced a 34% increase in its ordinary dividend starting in the fourth quarter of 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Earnings per Share (EPS) | $1.98 | $1.84 |
| Revenue | $15,116.81 million | $15,116.81 million |
| Cash from Operations (CFO) | $5.1 billion | Not Provided |
| Production (MBOED) | 1,945 | 1,805 |
Income Statement Highlights
ConocoPhillips reported total production of 1,945 thousand barrels of oil equivalent per day (MBOED) for the second quarter, an increase of 140 MBOED from the same period last year. The company's total average realized price was $56.56 per BOE, a 4% increase from $54.50 per BOE in Q2 2023.
Balance Sheet and Cash Flow
As of the end of the second quarter, ConocoPhillips had $6.3 billion in cash and short-term investments and $1.0 billion in long-term investments. The company funded $3.0 billion in capital expenditures and investments, repurchased $1.0 billion in shares, and paid $0.9 billion in ordinary dividends and VROC.
Outlook
For the third quarter of 2024, ConocoPhillips expects production to be between 1.87 and 1.91 million barrels of oil equivalent per day (MMBOED). The company has updated its full-year production guidance to approximately 1.93 to 1.94 MMBOED, reflecting strong second-quarter results.
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Explore the complete 8-K earnings release (here) from ConocoPhillips for further details.
