ConocoPhillips (COP) recently announced its fourth-quarter FY23 results, leading to an increase in its stock price. While the company’s revenue of $15.307 billion fell short of the consensus estimate of $15.942 billion, its adjusted earnings per share (EPS) of $2.40 surpassed the consensus estimate of $2.09.
During the fourth quarter, ConocoPhillips reported a total production of 1,902 thousand barrels of oil equivalent per day (MBOED), marking a year-over-year increase of 144 MBOED. Lower 48 production averaged 1,086 MBOED, including contributions from the Permian (750 MBOED), the Eagle Ford (211 MBOED), and the Bakken assets (110 MBOED).
However, the average realized price declined by 18% compared to the previous year, reaching $58.21 per barrel of oil equivalent (BOE). Despite this, the company managed to generate operating cash flow of $5.3 billion.
ConocoPhillips utilized its cash flow to fund $2.9 billion of capital expenditures and investments, pay $1.4 billion in ordinary dividends and VROC (Variable Rate of Convertible Preferred Stock), and repurchase $1.1 billion of shares. The company ended the year with cash and short-term investments amounting to $6.9 billion.
Looking ahead, ConocoPhillips has provided its outlook for the upcoming period. It expects production to range between 1.88 and 1.92 million barrels of oil equivalent per day (MMBOED). Additionally, the company anticipates production to reach 1.91 to 1.95 MMBOED, with adjusted operating costs ranging from $8.9 billion to $9.1 billion.
ConocoPhillips also declared a quarterly ordinary dividend of $0.58 per share, payable on March 1, 2024, to stockholders of record as of February 19, 2024. Moreover, the company plans to return $9 billion in capital to its shareholders in FY24.
In a significant move during the quarter, ConocoPhillips gave the green light to Alaska’s Willow project, which aims to target 600 million barrels of oil. This decision is expected to reduce the United States’ reliance on foreign energy sources.
Following the announcement of its fourth-quarter FY23 results, ConocoPhillips’ stock price has risen by 1.8% to $114.35 as of the latest check on Thursday.
Overall, ConocoPhillips’ fourth-quarter results indicate steady growth in total production, despite a decline in average realized prices. The company’s strong operating cash flow and plans for returning capital to shareholders suggest a positive outlook for future performance. Additionally, the approval of the Willow project demonstrates ConocoPhillips’ commitment to domestic energy production and reducing reliance on foreign sources.
