Oil Prices Hit ConocoPhillips Q4 Revenue But EPS Beat, Eyes $9B Capital Return

ConocoPhillips COP shares are trading higher after it reported fourth-quarter FY23 results.

Revenue of $15.307 billion missed the consensus of $15.942 billion, while adjusted EPS of $2.40 beat the consensus of $2.09. 

Total production was 1,902 thousand barrels of oil equivalent per day (MBOED), an increase of 144 MBOED from the same period a year ago.

Lower 48 production averaged 1,086 MBOED, which includes 750 MBOED from the Permian, 211 MBOED from the Eagle Ford, and 110 MBOED from the Bakken assets.

The average realized price declined 18% Y/Y to $58.21 per barrel of oil equivalent (BOE).

Operating cash flow stood at $5.3 billion. ConocoPhillips funded $2.9 billion of capital expenditures and investments, paid $1.4 billion in ordinary dividends and VROC, and repurchased $1.1 billion of shares.

The company had preliminary 2023 year-end proved reserves of 6.8 billion barrels of oil equivalent (BBOE), with a total reserve replacement ratio of 123%.

Dividend: ConocoPhillips declared a quarterly ordinary dividend of $0.58 per share, payable on March 1, 2024, to stockholders of record as of February 19, 2024.

The company ended the year with cash and short-term investments of $6.9 billion.

Outlook: ConocoPhillips expects production to be 1.88 to 1.92 MMBOED. COP expects production of 1.91 to 1.95 MMBOED and adjusted operating cost of $8.9 billion to $9.1 billion.

ConocoPhillips announced a planned return of capital to shareholders of $9 billion in FY24. 

In the quarter, ConocoPhillips showed greenlight to Alaska’s Willow project, targeting 600 million barrels, reducing foreign energy reliance.

Price Action: COP shares are trading higher by 1.8% at $114.35 on the last check Thursday.