ConocoPhillips Q3 Earnings: EPS Beat, Dividend Boost, Buyback Expansion & More

ConocoPhillips COP shares are trading higher after the company released third-quarter results.

Here's a breakdown of the report.

• Revenue of $13.604 billion missed the consensus of $14.018 billion
• Adjusted EPS of $1.78, beating the consensus of $1.64. 
• Operating cash flow stood at $5.8 billion.
• $2.9 billion of capital expenditures and investments funded.
• $0.9 billion in ordinary dividends and VROC paid.
• Repurchased $1.2 billion of shares.
• Quarter ended with $7.1 billion in cash and short-term investments and $1.0 billion in long-term investments.

Dividend boost: ConocoPhillips raised the quarterly dividend per share by 34% to $0.78, payable on December 2, 2024, to stockholders of record as of November 11, 2024.

The Board approved an increase to the company’s existing share repurchase authorization by up to $20 billion.

Production: The company produced 1,917 thousand barrels of oil equivalent per day (MBOED). That's an increase of 111 MBOED from the same period a year ago.

Lower 48 production averaged 1,147 MBOED, which includes 781 MBOED from the Permian, 246 MBOED from the Eagle Ford, and 107 MBOED from the Bakken assets.

The average realized price fell 10% Y/Y to $54.18 per barrel of oil equivalent (BOE).

Outlook: ConocoPhillips projects third-quarter production of 1.99-2.03 million barrels of oil equivalent per day (MMBOED).

The company raised the outlook for FY24 production to 1.94-1.95 MMBOED (from 1.93 to 1.94 MMBOED).

ConocoPhillips reiterated capital expenditures guidance at about $11.5 billion.

Ryan Lance, chairman and chief executive officer, said, “We still anticipate closing the planned acquisition of Marathon Oil this quarter and expect to significantly exceed our initial $500 million synergy guidance.”

Investors can gain exposure to the COP stock via Texas Capital Funds Trust Texas Capital Texas Oil Index ETF OILT and IShares U.S. Oil & Gas Exploration & Production ETF IEO.

Price Action: COP shares are up 2.95% at $106.02 premarket at the last check Thursday.

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