ConocoPhillips Beats Q4 Revenue and EPS Estimates, Sets $10B Return of Capital Target

ConocoPhillips (NYSE: COP) reported fourth-quarter 2024 earnings that surpassed analysts' estimates, driven by strong production growth and cost-cutting measures. The company also announced a planned $10 billion return of capital to shareholders in 2025, reflecting its commitment to shareholder value and confidence in its long-term growth prospects.

Fourth-quarter 2024 earnings per share (EPS) came in at $1.90, compared to the consensus estimate of $1.84, while adjusted EPS was $1.98, beating the $1.84 estimate. Revenue for the quarter was $14.74 billion, exceeding the consensus of $14.30 billion. The company's total average realized price was $52.37 per barrel of oil equivalent (BOE), down 10% year-over-year (YoY) due to lower prices, but higher volumes offset the decline.

ConocoPhillips' production for the fourth quarter of 2024 was 2,183 thousand barrels of oil equivalent per day (MBOED), an increase of 281 MBOED from the same period a year ago. After adjusting for impacts from closed acquisitions and dispositions, production increased 139 MBOED or 6% from the same period a year ago. Lower 48 production averaged 1,308 MBOED, which includes 833 MBOED from the Permian, 296 MBOED from the Eagle Ford, and 151 MBOED from the Bakken assets.

The company's cash provided by operating activities was approximately $4.5 billion, and cash from operations (CFO) was over $5.4 billion. ConocoPhillips funded $3.3 billion of capital expenditures and investments, including $0.4 billion related to fourth-quarter acquisitions, repurchased $2.0 billion of shares, and paid $0.9 billion in ordinary dividends.

ConocoPhillips announced a planned 2025 return of capital target of $10 billion at current commodity prices and declared a first-quarter 2025 ordinary dividend of $0.78 per share. The company's full-year 2025 capital expenditure guidance is approximately $12.9 billion.

ConocoPhillips' strong fourth-quarter results and planned return of capital reflect the company's successful execution of its strategic growth initiatives, including the acquisition of Marathon Oil. The acquisition added high-quality, low-cost of supply inventory adjacent to the company's leading U.S. unconventional position, enhancing its portfolio and strengthening its position in key U.S. unconventional plays.

The company's planned return of capital also demonstrates its commitment to shareholder value and confidence in its long-term growth prospects. By distributing $10 billion to shareholders, ConocoPhillips is returning a significant portion of its cash flow to investors, while still maintaining a strong balance sheet and financial flexibility.

In conclusion, ConocoPhillips' strong fourth-quarter results and planned return of capital reflect the company's successful execution of its strategic growth initiatives and commitment to shareholder value. The company's acquisition of Marathon Oil and planned return of capital demonstrate its confidence in its long-term growth prospects and ability to generate strong cash flows. As the company continues to execute its growth strategy, investors can expect ConocoPhillips to maintain its competitive edge and generate strong returns in the long run.