ConocoPhillips Boosts Output, Exceeds Profit Expectations
ConocoPhillips has been ramping up its production, leveraging its oil assets to respond to global energy market dynamics. The company revealed plans to raise production by approximately 6% this year, aiming for a midpoint of 1.93 million barrels per day (bpd).
In 2023, the Houston-based firm acquired an additional 50% stake in the Surmont facility in Canada from TotalEnergies, bolstering its output to 1.82 million bpd.
Shares saw a modest increase of less than 1% in morning trading.
“ConocoPhillips continued to showcase robust financial and operational performance, executing on our returns-focused value proposition,” stated CEO Ryan Lance.
ConocoPhillips integrated assets from Concho Resources and Shell PLC in 2021, expanding its presence in the primary U.S. shale basin. The acquisitions in the Permian basin enhanced Conoco’s ability to adapt production strategies due to the assets’ short-cycle characteristics.
Last year, the company also greenlit the Willow project in Alaska, strengthening its long-term growth potential alongside initiatives like Qatar LNG and a Gulf Coast LNG project with Sempra.
Fourth-quarter production surged by 8.2% to 1.9 million barrels of oil equivalent per day (boepd), exceeding its prior forecast, driven in part by a 79,000 boepd uptick in Permian output.
Despite the production gains, Conoco faced challenges with a lower total average realized price, which dropped by 18% to $58.21 per barrel of oil equivalent in the quarter. Additionally, the company anticipates higher adjusted operating costs of around $9 billion this year, up from $8.4 million in 2023.
ConocoPhillips projects total capital expenditure for 2024 to range between $11.0 billion and $11.5 billion, consistent with last year’s expenditures.
In terms of shareholder returns, the company aims to deliver a minimum of $9 billion in 2024, compared to $11 billion in the previous year.
ConocoPhillips reported adjusted fourth-quarter earnings of $2.40 per share, surpassing analysts’ average estimate by 31 cents, according to LSEG data.
