ConocoPhillips has bumped up its current share redemption package to up to $20 billion and raised its ordinary dividend by 34 percent to $0.78 per share.
In the first nine months the exploration and production company repurchased $3.5 billion worth of stock and paid $2.7 billion in ordinary dividends and variable return of cash, according to its quarterly regulatory filing.
Houston, Texas-based ConocoPhillips said it expects to distribute at least $9 billion in total to shareholders this year.
For the third quarter ConocoPhillips reported $2.06 billion in net profit, down from $2.8 billion for the same three-month period last year as lower realized prices offset higher production.
Earnings per share excluding special items landed at $1.78, compared to $2.16 for the third quarter of 2023, it said in a separate statement on its website. The third quarter 2024 figure beat the Zacks Consensus Estimate, which averages projections by brokerage analysts, of $1.68 per share.
ConocoPhillips logged a total average realized price of $54.18 per barrel of oil equivalent for the third quarter of 2024, compared to $60.05 for the corresponding period 2023.
It raised its production guidance for 2024 to 1.94 million barrels of oil equivalent a day (MMboed) to 1.95 MMboed from the previous 1.93 MMboed to 1.94 MMboed as output in the first nine months grew 120,000 boed year-on-year to 1.92 MMboed.
For the third quarter, production rose 111,000 boed year-over-year to 1.92 MMboed. Adjusted for completed acquisitions and divestments, third-quarter 2024 production marked a three percent increase year-on-year, according to the company.
ConocoPhillips’ assets in the Lower 48, or the contiguous 48 states, set a record production of 1.15 MMboed, the company said. The Permian Basin averaged 781,000 boed, the Eagle Ford Basin 246,000 boed and the Bakken Formation 107,000 boed. Last year ConocoPhillips achieved its highest annual Lower 48 production with an average output of 1.1 MMboed.
When announcing its initial production forecast for 2024, ConocoPhillips said it expected to slow down its United States production and would instead focus on operational and capital efficiency. It said then it planned to grow production elsewhere.
The change in production guidance excludes the impact of recent acquisitions, it said.
Sales and other operating revenues for the third quarter totaled $13.04 billion, down from $14.25 billion for the comparable quarter last year.
As of September, ConocoPhillips had $5.22 billion in cash and cash equivalents. Current assets totaled $13.98 billion.
Meanwhile its current liabilities stood at $10.77 billion at the end of the third quarter, including $1.31 billion in short-term debt.
“We still anticipate closing the planned acquisition of Marathon Oil this quarter and expect to significantly exceed our initial $500 million synergy guidance”, chair and chief executive Ryan Lance said.
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