ConocoPhillips Earnings Surge with LNG and Record Lower 48 Production, Raises Dividend

Houston based ConocoPhillips reported better than expected third quarter earnings before the market opened Thursday on higher production. Q3 net income nearly doubled to $4.5B, or $3.55/share, from $2.4B, or $1.78/share, in the year-earlier quarter; COP did not report revenue for the quarter. Q3 production jumped 13.5% to 1.75M boe/day from 1.54M boe/day in the same period last year. The company also increased its quarterly dividend by 11% to $0.51/share and raised its existing stock buyback authorization by $20B.

conocophillips workers offshore

Houston based COP is the largest U.S. based independent exploration and production firm based on production volumes.

ConocoPhillips Q3 22 Earnings:

Highlights

  • Q3 net income nearly doubled to $4.5B, or $3.55/share, from $2.4B, or $1.78/share, in the year-earlier quarter
  • Adj EPS $3.60 (est $3.44)
  • Adj Net $4.59B (est $4.34B)
  • COP did not report revenue for the quarter.
  • Cash Flow from Ops $8.7B, EST. $6.69B
  • Ended the quarter with cash and short-term investments of $10.7 billion.
  • Production 1,754 MBOE/D Up 13.5% from 1.54M boe/day in the same period last year
  • Expanded global LNG portfolio through participation in QatarEnergy’s North Field South LNG project and agreed to terminal services in Germany for a 15-year period at the prospective German LNG Terminal.
  • Lower 48 region delivered record production of 1.01M boe/day.
  • Raises Qtrly Div By 11%, Boosts Existing Buyback By $20B
  • For the quarter, cash provided by operating activities totaled $8.7B and cash from operations was $7.2B.
Conoco LNG Curtis Island Australia

Stock Market Reaction

  • 52wk High 136.12
  • Today $135.37
  • 135.37 +8.86 (7.00%) Pre-Market
  • 135.37 +61.6 (83.50%) YTD
  • 135.37+62.831(86.62%) Over year
  • 135.37+83.414(160.55%) Over 5 years

Outlook

ConocoPhillips forecasts Q4 production of 1.74M-1.8M boe/day and maintains its full-year expected production at 1.74M boe/day.

Reflecting inflationary impacts, the company increased its FY 2022 operating capital guidance to $8.1B compared with prior guidance of $7.8B and adjusted operating cost to $7.7B from $7.5B previously.

About ConocoPhillips

ConocoPhillips is one of the world’s leading exploration and production companies based on both production and reserves, with a globally diversified asset portfolio. Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 13 countries, $95 billion of total assets and approximately 9,400 employees on September 30, 2022. Production averaged 1,731 MBOED for the nine months ended September 30, 2022, and proved reserves were 6.1 BBOE as of Dec. 31, 2021.

Source: ConocoPhillips

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