ConocoPhillips (NYSE: COP) has announced an increase in its ordinary dividend and share buyback program following a third-quarter earnings report that surpassed market expectations. The company’s strong performance was driven by higher overall oil and gas production, particularly in the U.S. shale sector.
On Thursday, ConocoPhillips reported adjusted earnings per share (EPS) of $1.78 for the third quarter, down from $2.16 EPS in the same quarter last year. However, this figure exceeded the analyst consensus estimate of $1.65, as compiled by The Wall Street Journal.
The rise in crude oil and natural gas production helped ConocoPhillips mitigate the impact of lower oil and gas prices compared to the previous year. The company’s average realized price fell to $54.18 per barrel of oil equivalent (boe), representing a 10% decrease from $60.05 per boe in the third quarter of 2023.
ConocoPhillips reported an average production of 1.917 million barrels of oil equivalent per day (boed) for the third quarter of 2024, a 3% increase from the same period last year, when adjusted for completed acquisitions and divestitures. Notably, the company achieved record production levels in the Lower 48 states, averaging 1.147 million boed, which included 781,000 boed from the Permian Basin, 246,000 boed from the Eagle Ford, and 107,000 boed from the Bakken.
Looking ahead, ConocoPhillips expects its total production for the fourth quarter of 2024 to be between 1.99 and 2.03 million boed. The company has also raised its full-year production guidance to a range of 1.94 to 1.95 million boed, an increase from its previous forecast of 1.93 to 1.94 million boed.
In addition to its operational updates, ConocoPhillips’s board has approved a 34% increase in its ordinary dividend, bringing it to $0.78 per share. The existing share repurchase authorization has also been raised 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 for 2024.
ConocoPhillips is also progressing towards the acquisition of Marathon Oil, anticipated to close this quarter, and expects to significantly exceed its initial synergy guidance of $500 million.
Following the announcement, shares of ConocoPhillips rose by 3% in pre-market trading in New York.
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