ConocoPhillips (COP) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 production of 1,945 MBOED, up 140 MBOED year-over-year, with strong contributions across the global portfolio and early production at Eldfisk North and Willow project milestones.

• Announced a $22.5B all-stock acquisition of Marathon Oil, expected to close late Q4 2024, adding U.S. onshore assets, LNG capacity, and $500M in expected annual synergies.

• Announced a 34% increase in the ordinary dividend to $0.78/share starting Q4 2024, incorporating VROC, subject to board approval.

• Advanced global LNG strategy with new long-term agreements in Belgium, Europe, and Asia, expanding total volume placement to nearly 6 MTPA, targeting 10–15 MTPA in coming years.

• Returned $1.9B to shareholders in Q2 via $1.0B in share repurchases and $0.9B in dividends and VROC.

Financial highlights

• Q2 2024 adjusted earnings were $2.3B ($1.98/share), up from $2.2B ($1.84/share) year-over-year; Q2 net income was $2.33B.

• Revenues for Q2 2024 were $14.14B, up from $12.88B in Q2 2023.

• Cash from operations was $5.1B in Q2; ended Q2 with $6.3B in cash and short-term investments.

• Distributed $4.2B to shareholders in H1 2024, including $2.3B in share repurchases and $1.8B in dividends/VROC.

• Debt-to-capital ratio at 27% as of June 30, 2024; maintained strong credit ratings.

Outlook and guidance

• Q3 2024 production expected at 1.87–1.91 MMBOED, including ~90 MBOED of turnaround impacts.

• Full-year 2024 production guidance narrowed to 1.93–1.94 MMBOED, implying ~3% underlying growth.

• Full-year CapEx expected at ~$11.5B, reflecting Willow progress and increased Lower 48 activity.

• Full-year DD&A guidance lowered to $9.3–$9.4B; adjusted corporate segment net loss guidance at $0.8–$0.9B.

• Full-year adjusted operating cost guidance increased to $9.2–$9.3B due to higher transportation, processing, and inflation in Lower 48.