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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 Statements
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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.

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