ConocoPhillips (NYSE: COP) announced a boost to its regular dividend and share buyback program following third-quarter earnings that exceeded market expectations. This success is attributed to higher overall oil and gas production, particularly record output from the U.S. shale sector.
On Thursday, the U.S. oil and gas producer reported adjusted earnings per share of $1.78 for the third quarter. While this is a decline from $2.16 per share a year ago, it surpasses the analyst consensus estimate of $1.65 reported by The Wall Street Journal.
The increase in crude oil and natural gas production helped ConocoPhillips mitigate the impact of lower oil and gas prices compared to last year. The company’s total average realized price was $54.18 per barrel of oil equivalent (boe), reflecting a 10% decrease from the $60.05 per boe realized in the same quarter of 2023.
For the third quarter of 2024, ConocoPhillips averaged production of 1.917 million barrels of oil equivalent per day (boed), marking a 3% increase from the previous year after adjusting for completed acquisitions and divestitures.
The company reported record production in the Lower 48 states, reaching 1.147 million boed. This included 781,000 boed from the Permian Basin, 246,000 boed from the Eagle Ford, and 107,000 boed from the Bakken formation.
Looking ahead, ConocoPhillips expects its total production for the fourth quarter of 2024 to range between 1.99 and 2.03 million boed. The company has also raised its full-year production guidance to between 1.94 and 1.95 million boed, up from the previous estimate of 1.93 to 1.94 million boed.
Additionally, ConocoPhillips’s board approved a 34% increase in its ordinary dividend to $0.78 per share. The company will also boost its share repurchase authorization by up to $20 billion.
Chairman and CEO Ryan Lance indicated that the company is on track to distribute at least $9 billion to shareholders in 2024. He also mentioned that ConocoPhillips is expected to finalize its acquisition of Marathon Oil this quarter, with anticipated synergies likely to exceed the initial $500 million estimate.
Following the earnings announcement, shares of ConocoPhillips rose by 3% in pre-market trading in New York.
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