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ConocoPhillips 8-K Report, Financial Results (Aug 1, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed August 1, 2024
Period End
August 1, 2024
Security
COP
In the record · 2016–202610-K1110-Q338-K108

COP filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 108 current reports (8-K) between 2016 and 2026.

  1. Impairment8-K · Jun ’17Jun ’17
  2. Deal closed8-K · Jan ’21Jan ’21
  3. Leadership change8-K · Nov ’22Nov ’22
  4. Leadership change8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed August 1, 2024. Cited figures are marked; the original filing is the authoritative source.

ConocoPhillips (COP) reported second-quarter 2024 earnings of $2.3 billiona, or $1.98 per share, up from $2.2 billion, or $1.84 per share, in the second quarter of 2023.

Adjusted earnings matched reported earnings for the quarter at $1.98b per share, since no special items were recorded. Cash provided by operating activities was $4.9 billion, and cash from operations (a non-GAAP measure) was about $5.1 billion. Production reached a record 1,945 MBOED, up 140 MBOED year over year, or 76 MBOED (4%) after adjusting for closed acquisitions and dispositions.

Realized prices averaged $56.56c per BOE, 4% higher than a year earlier. Shareholder returns remained central to the story. The company distributed $1.9 billion in the quarter, including $1.0 billion in buybacks and $0.9 billion in ordinary dividends and VROC.

It declared a third-quarter ordinary dividend of $0.58d per share plus a $0.20 per share VROC, and announced a 34% increase in the ordinary dividend to $0.78 per share starting in the fourth quarter, with the VROC folded into the base dividend. Management reaffirmed a commitment to returning at least $9 billion of capital in 2024. Ending cash and short-term investments were $6.3 billion.

The filing also updated full-year 2024 guidance. Production guidance was narrowed upward to 1.93 to 1.94 MMBOED from 1.91 to 1.95 MMBOED. Capital expenditures were raised to about $11.5 billion, and operating cost guidance rose to $9.2 to $9.3 billion on higher transportation, processing and Lower 48 inflation costs.

Offsetting this, corporate segment loss and DD&A guidance were lowered. Management also said the pending all-stock acquisition of Marathon Oil is progressing, with closing expected in late 2024.

02—Key points

Key Highlights

  1. Q2 2024 EPS of $1.98 (GAAP and adjusted), up from $1.84 a year earlier; net income of $2.3 billion
  2. Record production of 1,945 MBOED, up 76 MBOED (4%) on a like-for-like basis versus Q2 2023
  3. Ordinary dividend raised 34% to $0.78 per share from Q4 2024, with the $0.20 VROC incorporated into the base dividend
  4. Q2 distributions of $1.9 billion ($1.0 billion buybacks, $0.9 billion dividends and VROC); reaffirmed at least $9 billion of 2024 capital returns
  5. Full-year 2024 production guidance raised to 1.93–1.94 MMBOED; capex guidance increased to about $11.5 billion
  6. Adjusted operating cost guidance raised to $9.2–9.3 billion, reflecting transportation, processing and Lower 48 inflation pressures
  7. Pending all-stock Marathon Oil acquisition expected to close late in Q4 2024

03—Questions

Frequently Asked Questions

  1. How did ConocoPhillips perform in Q2 2024 compared with Q2 2023?

    Earnings rose to $2.3 billion, or $1.98 per share, from $2.2 billion, or $1.84 per share. Higher realized prices and volumes more than offset higher DD&A and operating costs. Adjusted and reported earnings were identical because there were no special items in the quarter.

  2. What is changing with the dividend?

    The company declared a Q3 2024 ordinary dividend of $0.58 per share plus a $0.20 VROC payment, both payable September 3, 2024. Starting in Q4 2024, the ordinary dividend rises 34% to $0.78 per share, and the variable component is absorbed into that base dividend, so future payouts will be more fixed in nature.

  3. Did the company change its 2024 outlook?

    Yes, in mixed directions. Production guidance was raised to 1.93–1.94 MMBOED and capex was raised to about $11.5 billion, while corporate segment loss and DD&A guidance were lowered. Adjusted operating costs guidance was increased to $9.2–9.3 billion.

  4. How much cash is the company returning to shareholders?

    In Q2 2024 it distributed $1.9 billion, including $1.0 billion in share repurchases and $0.9 billion in ordinary dividends and VROC. Management reiterated a commitment to returning at least $9 billion in 2024. Year to date through June, buybacks totaled $2.3 billion and dividends plus VROC totaled $1.8 billion.

  5. What is the status of the Marathon Oil acquisition?

    ConocoPhillips announced an all-stock agreement to acquire Marathon Oil and says the transaction is progressing, with closing expected in late Q4 2024. The filing also notes risks such as regulatory approvals, Marathon stockholder approval, and integration challenges.

04—Continue

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