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ConocoPhillips Q1 2024 Earnings: Surpasses EPS Estimates and Declares Dividend

GuruFocus Research
·3-min read

  • Earnings Per Share (EPS): Reported at $2.15, surpassing the estimate of $2.04.

  • Adjusted EPS: Posted at $2.03, slightly below the estimated $2.04.

  • Net Income: Achieved $2.6 billion, exceeding the estimated $2.534 billion.

  • Revenue: Details not provided, comparison with the estimated $15.047 billion revenue not possible.

  • Cash from Operations (CFO): Generated $5.1 billion, indicating robust operational efficiency.

  • Dividends: Declared an ordinary dividend of $0.58 per share and a VROC of $0.20 per share.

  • Production: Increased to 1,902 thousand barrels of oil equivalent per day (MBOED), up from 1,792 MBOED year-over-year.

On May 2, 2024, ConocoPhillips (NYSE:COP) disclosed its first-quarter earnings for the year, revealing a performance that slightly exceeded analyst expectations for earnings per share (EPS). The detailed earnings report, presented in their recent 8-K filing, showcases both the challenges and triumphs the company faced during the period.

Company Overview

ConocoPhillips stands as a leading independent exploration and production company, with significant operations across the globe including in the United States, Norway, and various countries in Asia-Pacific and the Middle East. As of the end of 2023, the company boasted a substantial reserve base of 6.8 billion barrels of oil equivalent and had an average daily production rate that underscores its substantial role in the energy sector.

Financial Performance Highlights

For Q1 2024, ConocoPhillips reported earnings of $2.6 billion, or $2.15 per share, a slight decrease from $2.9 billion, or $2.38 per share in the same quarter the previous year. When adjusted for special items, the earnings stood at $2.4 billion, or $2.03 per share, which is a notch above the analyst's estimate of $2.04 per share. This performance was influenced by a mix of lower oil prices and higher operational costs, alongside increased production volumes and a beneficial tax incentive.

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The company's operational cash flow was robust, generating $5.1 billion in cash from operations, after adjusting for working capital changes. This financial strength enabled ConocoPhillips to distribute $2.2 billion to shareholders, retire $0.5 billion in debt, and fund $2.9 billion in capital expenditures and investments.

Operational Achievements and Strategic Moves

During the quarter, ConocoPhillips achieved a production level of 1,902 thousand barrels of oil equivalent per day (MBOED), marking a significant increase from the previous year. This includes substantial contributions from their operations in the Lower 48, particularly from the Permian Basin and other key regions. The company also highlighted its progress in international projects and its milestone of the 1000th LNG cargo export, underscoring its strategic focus on expanding its global footprint in sustainable energy solutions.

Dividends and Shareholder Returns

Reflecting its commitment to shareholder returns, ConocoPhillips declared an ordinary dividend of $0.58 per share and a variable return of cash (VROC) of $0.20 per share for the second quarter of 2024. These decisions are part of a broader strategy to return at least $9 billion to shareholders throughout the year.

Looking Ahead

ConocoPhillips provided an optimistic outlook for the second quarter of 2024, with expected production ranging between 1.91 to 1.95 million BOED. The company reaffirmed its full-year guidance, reflecting confidence in its operational capabilities and strategic initiatives.

As ConocoPhillips continues to navigate the complexities of the global energy market, its focus on strategic growth, efficient operations, and shareholder returns positions it as a resilient player in the industry. Investors and stakeholders will likely keep a close watch on how the company adapts to ongoing market dynamics and capitalizes on emerging opportunities.

For further details on ConocoPhillips' financial performance and strategic initiatives, please visit their investor relations website.

Explore the complete 8-K earnings release (here) from ConocoPhillips for further details.

This article first appeared on GuruFocus.