ConocoPhillips, a global energy company, recently disclosed its financial results for the third quarter of 2023. The company reported earnings of $2.8 billion for the quarter, or $2.32 per share. By comparison, over the same period in 2022, ConocoPhillips reported earnings of $4.5 billion or $3.55 per share. However, when special items are excluded, adjusted earnings for the third quarter of 2023 amount to $2.6 billion, or $2.16 per share, while adjusted earnings for the third quarter of 2022 were $4.6 billion, or $3.60 per share.
CEO Perspective and Strategic Achievements
Ryan Lance, president and CEO of ConocoPhillips, expressed the company’s strong performance, saying, “ConocoPhillips continues to execute well on our returns-driven value proposition.” He highlighted several achievements, including record production for the third consecutive quarter, the purchase of the remaining 50% of Surmont, and progress on the global LNG strategy. The company also announced a 14% increase in its quarterly ordinary dividend.
Third-quarter highlights and recent announcements
Quarterly ordinary dividend increased by 14% to $0.58 per share.
Completion of the purchase of the remaining 50% of Surmont in October for approximately $2.7 billion.
First steam injection at Surmont’s Pad 267 and start-up of the second phase of the Montney Central Processing Facility (CPF2) in Canada.
First production ahead of schedule in October for Tommeliten A and partners Breidablikk, Kobra East & Gekko in Norway, and Bohai Phase 4B in China.
Further diversification of the LNG portfolio with the signing of a 15-year regasification capacity agreement for around 1.5 million tonnes per year at the Gate LNG terminal in the Netherlands.
Company and Lower 48 production of 1,806 thousand barrels of oil equivalent per day (MBOED) and 1,083 MBOED, respectively.
Cash flow from operating activities of $5.4 billion and $5.5 billion from operations (CFO).
Distribution of $2.6 billion to shareholders through a three-step framework, including $1.3 billion in the form of a regular dividend and variable cash return (VROC) and $1.3 billion through share buybacks.Ending the quarter with cash and short-term investments of $9.7 billion, including proceeds from the issuance of $2.7 billion in long-term debt to finance the acquisition of Surmont.
ConocoPhillips’ third-quarter results reflect both challenges and opportunities in the energy sector. The company’s commitment to the value proposition and its strategic initiatives, such as diversifying its LNG portfolio and increasing its dividend, demonstrate a proactive approach to changing market dynamics.
