ConocoPhillips joined the crowd of firms with lower profits and earnings


Like several other majors, ConocoPhillips reported Thursday its second-quarter 2023 earnings and adjusted earnings were lower than the previous year.

Second quarter adjusted earnings were 2.2 billion or $1.84 per share compared with the second-quarter 2022 earnings of $5.1 billion and $3.96 per share and second-quarter 2022 adjusted earnings of $5.1 billion or $3.91 per share.

“The second quarter demonstrated our strong underlying performance and commitment to advancing the returns-focused value proposition we shared at our Analyst & Investor Meeting in April,” said Ryan Lance, chairman and chief executive officer.

“We achieved record production and increased our full-year production guidance for the second consecutive quarter. We executed an agreement to purchase the remaining 50% interest in Surmont and further progressed our global LNG strategy. Our full-year distribution target of $11 billion remains unchanged. Looking ahead, we remain constructive on the second half of the year as well as the long-term outlook for the sector. By continuing to enhance our deep, durable and diversified asset base, we are well positioned to generate competitive cash flow and returns for decades.”

Second-Quarter Highlights and Recent Announcements

  • Delivered record company and Lower 48 production of 1,805 thousand barrels of oil equivalent per day (MBOED) and 1,063 MBOED, respectively.
  • Executed agreement to purchase the remaining 50% interest in Surmont, subject to regulatory approvals and other closing conditions.
  • Completed acquisition of an equity interest in Qatar’s North Field South project.
  • Signed 20-year offtake agreements at the Saguaro LNG export facility on the west coast of Mexico for approximately 2.2 million tonnes per annum, subject to Mexico Pacific reaching final investment decision.
  • Generated cash provided by operating activities of $3.9 billion and cash from operations (CFO) of $4.7 billion.
  • Distributed $2.7 billion to shareholders through a three-tier framework, including $1.4 billion through the ordinary dividend and variable return of cash (VROC) and $1.3 billion through share repurchases.
  • Ended the quarter with cash and short-term investments of $7.1 billion.

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