ConocoPhillips is another energy company reporting lower fourth-quarter 2024 earnings as well as those for the year.
The company had earnings of $2.3 billion or $1.90 a share compared with fourth-quarter 2023 earnings of $3 billion and $2.52 per share.
Excluding special items, fourth-quarter 2024 adjusted earnings were $2.4 billion, or $1.98 per share, compared with fourth-quarter 2023 adjusted earnings of $2.9 billion, or $2.40 per share. Special items for the current quarter were primarily due to transaction and integration expenses largely offset by a tax benefit, both resulting from the acquisition of Marathon Oil, and debt transaction-related expenses.
Full-year 2024 earnings were $9.2 billion, or $7.81 per share, compared with full-year 2023 earnings of $11.0 billion, or $9.06 per share. Excluding special items, full-year 2024 adjusted earnings were $9.2 billion or $7.79 per share, compared with full-year 2023 adjusted earnings of $10.6 billion, or $8.77 per share.
Company chairman and chief executive officer Ryan Lance said the company returned $9.1 billion to shareholders and its planned 2025 return of capital to shareholders will total $10 billion.
“Looking ahead, we are focused on achieving more than $1 billion in integration-related run rate synergies by year-end, over half of which is already reflected in our announced capital guidance. We are starting the year with a $10 billion return of capital target.”
Full-year summary and recent announcements
- Generated cash provided by operating activities of $20.1 billion and cash from operations (CFO) of $20.3 billion.
- Distributed $9.1 billion to shareholders, including $5.5 billion through share repurchases and $3.6 billion through the ordinary dividend and variable return of cash (VROC).
- Ended the year with cash and short-term investments of $6.4 billion and long-term investments of $1.1 billion.
- Achieved 14% return on capital employed; 15% cash-adjusted return on capital employed.
- Advanced previously announced $2 billion disposition target by signing agreements to divest noncore Lower 48 assets of $0.6 billion, subject to customary closing adjustments and expected to close in the first half of 2025.
- Delivered full-year total company and Lower 48 production of 1,987 thousand barrels of oil equivalent per day (MBOED) and 1,152 MBOED, respectively. Excluding one month of Marathon Oil production, the company and Lower 48 produced 1,955 MBOED and 1,124 MBOED, respectively.
- Reached first production at Nuna in Alaska and Bohai Phase 5 in China in the fourth quarter and at Eldfisk North in Norway in the second quarter.
- Progressed global LNG strategy with a long-term regasification agreement at Zeebrugge LNG terminal in Belgium and a long-term LNG sales agreement in Asia.
- Exercised preferential rights and acquired additional working interests in Alaska’s Kuparuk River and Prudhoe Bay Units in the fourth quarter.
- Completed debt transactions to simplify the company’s capital structure post the acquisition of Marathon Oil, extending the weighted average maturity and improving the weighted average coupon of the portfolio.
- Achieved the Oil and Gas Methane Partnership 2.0 Gold Standard designation in 2024.
