Summary
ConocoPhillips reported a net income of $2.23 billion for the second quarter of 2023, a significant decrease from $5.15 billion in the same period last year. This decline was primarily driven by lower realized commodity prices for crude oil and natural gas, which averaged $54.50 per BOE compared to $88.57 per BOE in Q2 2022. The company also saw a reduction in gains from asset dispositions and higher depreciation, depletion, and amortization (DD&A) expenses. Despite the lower profitability, ConocoPhillips continued to return capital to shareholders, distributing $2.7 billion in the second quarter through dividends and share repurchases, with a full-year capital return program of $11 billion. The company also made strategic moves, including agreeing to purchase the remaining 50% interest in the Surmont oil sands asset and closing on its interest in Qatar's North Field South (NFS) LNG project, signaling a continued focus on portfolio optimization and LNG expansion. Production levels remained strong, with record company and Lower 48 production, indicating operational resilience.
Financial Highlights
44 data points| Revenue | $11.02B |
| Cost of Revenue | $4.62B |
| Gross Profit | $6.40B |
| SG&A Expenses | $205.00M |
| Net Income | $2.23B |
| EPS (Basic) | $1.84 |
| EPS (Diluted) | $1.84 |
| Shares Outstanding (Basic) | 1.21B |
| Shares Outstanding (Diluted) | 1.21B |
Key Highlights
- 1Net income decreased by 56.8% to $2.23 billion in Q2 2023 compared to $5.15 billion in Q2 2022, primarily due to lower commodity prices.
- 2Average realized prices for total production decreased by 38.5% to $54.50 per BOE in Q2 2023 compared to $88.57 per BOE in Q2 2022.
- 3The company generated $3.9 billion in cash from operating activities in Q2 2023 and returned $2.7 billion to shareholders through dividends and share repurchases.
- 4ConocoPhillips agreed to acquire the remaining 50% interest in the Surmont oil sands asset for approximately $3 billion CAD, expected to close in H2 2023.
- 5The company closed on its formation of the North Field South (NFS) LNG joint venture in Qatar, adding to its global LNG portfolio.
- 6Production reached record levels, with company-wide production at 1,805 MBOED and Lower 48 production at 1,063 MBOED in Q2 2023.