10-KPeriod: FY2023

CONOCOPHILLIPS Annual Report, Year Ended Dec 31, 2023

Filed February 15, 2024For Securities:COP

Summary

ConocoPhillips reported a solid financial performance for the fiscal year ended December 31, 2023, generating $20.0 billion in cash provided by operating activities. The company returned $11.0 billion to shareholders through its three-tier capital return program, comprising ordinary dividends, share repurchases, and a Variable Return of Cash (VROC), demonstrating a strong commitment to shareholder value. Production reached a record 1,826 MBOED for the full year, with the Lower 48 segment notably achieving its own record production. Strategic growth initiatives included the acquisition of the remaining 50% interest in the Surmont oil sands development and progress in global LNG ventures with acquisitions in Qatar and offtake agreements in Mexico. The company also made significant strides in its environmental, social, and governance (ESG) commitments, accelerating its GHG emissions intensity reduction target and achieving the Gold Standard Pathway designation from the Oil and Gas Methane Partnership (OGMP) 2.0 Initiative. Looking ahead to 2024, ConocoPhillips plans to return $9 billion to shareholders and forecasts capital expenditures between $11.0 billion and $11.5 billion, with production guidance between 1.91 to 1.95 MMBOED, indicating continued focus on operational execution and shareholder returns.

Financial Highlights

49 data points
Beta

Revenue

$56.14B

60.9% Gross Margin

Net Income

$10.96B

19.5% Net Margin

EPS (Diluted)

$9.06

Total Assets

$95.92B

Cash & Equivalents

$5.63B

Free Cash Flow

$19.96B

Financial Statements
Beta
Revenue$56.14B
Cost of Revenue$21.98B
Gross Profit$34.17B
R&D Expenses$81.00M
SG&A Expenses$705.00M
Interest Expense$824.00M
Net Income$10.96B
EPS (Basic)$9.08
EPS (Diluted)$9.06
Shares Outstanding (Basic)1.20B
Shares Outstanding (Diluted)1.21B

Key Highlights

  • 1Record total production of 1,826 MBOED for the fiscal year 2023, with the Lower 48 segment also achieving record production.
  • 2Generated $20.0 billion in cash from operating activities, enabling significant shareholder returns.
  • 3Returned $11.0 billion to shareholders through a three-tier capital return program (ordinary dividend, share repurchases, VROC).
  • 4Accelerated GHG emissions intensity reduction target to 50-60% by 2030 (from a 2016 baseline) and achieved Gold Standard Pathway designation by OGMP 2.0.
  • 5Completed the acquisition of the remaining 50% working interest in Surmont for approximately $2.7 billion, enhancing the Canada segment.
  • 6Advanced global LNG strategy with acquisitions in Qatar (NFS3), Port Arthur LNG Phase 1 (PALNG), and regasification agreements in the Netherlands.
  • 7Took Final Investment Decision (FID) on the Willow project in Alaska and commenced winter construction.

Frequently Asked Questions

ConocoPhillips achieved a record total production of 1,826 MBOED for the fiscal year ended December 31, 2023.

In 2023, ConocoPhillips allocated capital to ongoing development drilling programs, major projects, exploration and appraisal activities, and strategic acquisitions, while also returning $11.0 billion to shareholders through its three-tier capital return program, reflecting a balanced approach to reinvestment and shareholder distributions.

ConocoPhillips is committed to ESG performance, evidenced by accelerating its GHG emissions intensity reduction target to 50-60% by 2030 (from a 2016 baseline) and achieving the Gold Standard Pathway designation by the Oil and Gas Methane Partnership (OGMP) 2.0 Initiative. The company also has an ambition to achieve net-zero Scope 1 and 2 operational emissions by 2050.

Key strategic moves in 2023 included the acquisition of the remaining 50% working interest in the Surmont oil sands development in Canada and advancing its global LNG strategy through acquiring interests in QatarEnergy LNG NFS(3) and Port Arthur LNG Phase 1 (PALNG), alongside securing regasification capacity in the Netherlands.