ConocoPhillips announces second-quarter 2024 results, quarterly dividend and VROC

• Reported second-quarter 2024 earnings per share and adjusted earnings per share of $1.98.
• Generated cash provided by operating activities of $4.9 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 third quarter.

HOUSTON—Aug. 1, 2024—ConocoPhillips (NYSE: COP) today 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.

Quarterly dividend and variable return of cash

ConocoPhillips declared a third-quarter ordinary dividend of $0.58 per share and a VROC of $0.20 per share, both payable Sept. 3, 2024, to stockholders of record at the close of business on Aug. 12, 2024.

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.

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.

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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, $96 billion of total assets, and approximately 10,200 employees at June 30, 2024. Production averaged 1,923 MBOED for the six months ended June 30, 2024, and proved reserves were 6.8 BBOE as of Dec. 31, 2023.

For more information, go to www.conocophillips.com.

Contacts

Dennis Nuss (media)
281-293-1149
dennis.nuss@conocophillips.com

Investor Relations
281-293-5000
investor.relations@conocophillips.com

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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), cash from operations (CFO), adjusted corporate segment net loss and adjusted operating costs.

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. Adjusted corporate segment net loss is defined as corporate and other segment earnings adjusted for special items.

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