10-QPeriod: Q2 FY2024

CONOCOPHILLIPS Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 1, 2024For Securities:COP

Summary

ConocoPhillips reported solid financial results for the second quarter of 2024, with revenues increasing to $13.62 billion, up from $12.35 billion in the prior year's quarter, driven by higher volumes and improved realized prices for crude oil and bitumen. Net income also saw a healthy increase, reaching $2.33 billion ($1.98 per diluted share), compared to $2.23 billion ($1.84 per diluted share) in the same period last year. The company generated strong operating cash flow of $4.9 billion during the quarter, underscoring its operational efficiency and ability to convert production into cash. A significant development during the quarter was the announcement of the all-stock acquisition of Marathon Oil Corporation for an enterprise value of approximately $22.5 billion. This strategic move is expected to enhance ConocoPhillips' U.S. onshore portfolio and global LNG capacity. The company is actively managing its capital, with plans to repurchase over $7 billion of shares in the first year post-acquisition and over $20 billion in total over three years, while also targeting approximately $2 billion in asset dispositions. ConocoPhillips reaffirmed its commitment to returning capital to shareholders, with planned returns of at least $9 billion for 2024.

Financial Highlights

46 data points
Beta

Revenue

$13.62B

64.3% Gross Margin

Net Income

$2.33B

17.1% Net Margin

EPS (Diluted)

$1.98

Total Assets

$95.99B

Cash & Equivalents

$4.29B

Free Cash Flow

$4.92B

Financial Statements
Beta
Revenue$13.62B
Cost of Revenue$4.86B
Gross Profit$8.76B
SG&A Expenses$164.00M
Net Income$2.33B
EPS (Basic)$1.99
EPS (Diluted)$1.98
Shares Outstanding (Basic)1.17B
Shares Outstanding (Diluted)1.17B

Key Highlights

  • 1Total Revenues reached $13.62 billion for the three months ended June 30, 2024, an increase from $12.35 billion in the prior year's quarter.
  • 2Net Income for the quarter was $2.33 billion, resulting in diluted EPS of $1.98, up from $2.23 billion and $1.84 per share respectively in Q2 2023.
  • 3Operating cash flow for the quarter was robust at $4.9 billion.
  • 4ConocoPhillips announced a definitive agreement to acquire Marathon Oil Corporation in an all-stock transaction valued at approximately $22.5 billion.
  • 5The company plans to repurchase over $7 billion of shares in the first year following the Marathon Oil acquisition closing and over $20 billion in total over three years.
  • 6Full-year capital expenditures guidance was updated to approximately $11.5 billion.
  • 7Third-quarter ordinary dividend declared at $0.58 per share and a Variable Return of Cash (VROC) payment of $0.20 per share.

Frequently Asked Questions

ConocoPhillips reported total revenues of $13.62 billion for the three months ended June 30, 2024, a rise from $12.35 billion in Q2 2023. Net income was $2.33 billion, or $1.98 per diluted share, compared to $2.23 billion, or $1.84 per diluted share, in the same period last year. The company generated $4.9 billion in cash from operating activities.

ConocoPhillips announced an all-stock acquisition of Marathon Oil Corporation with an enterprise value of approximately $22.5 billion. This strategic acquisition is expected to add high-quality, low-cost supply development opportunities to ConocoPhillips' existing U.S. onshore portfolio and expand its global LNG capacity. The transaction is anticipated to close by late fourth quarter 2024, subject to shareholder and regulatory approvals.

ConocoPhillips remains committed to returning capital to shareholders. For 2024, the company expects to return at least $9 billion. This includes ordinary dividends and Variable Return of Cash (VROC) payments. Additionally, following the completion of the Marathon Oil acquisition, the company plans to repurchase over $7 billion of shares in the first full year and over $20 billion in total over the first three years.

ConocoPhillips has updated its full-year capital expenditures guidance to approximately $11.5 billion. For the third quarter of 2024, production is expected to be between 1.87 to 1.91 million barrels of oil equivalent per day (MMBOED), and full-year production is projected to be around 1.93 to 1.94 MMBOED.