ConocoPhillips reported a net income of $2.3bn, or $1.9 per share, for the fourth quarter of 2024 (Q4 2024), down from $3bn, or $2.52 per share, in the same period of 2023.
The decline was attributed to acquisition-related transaction and integration expenses following the company’s acquisition of Marathon Oil, partially offset by tax benefits and debt transaction-related costs.
Excluding special items, Q4 2024 adjusted earnings stood at $2.4bn, or $1.98 per share, compared to $2.9bn, or $2.4 per share, a year earlier. The decrease was driven by lower commodity prices, higher depreciation, depletion, and amortisation (DD&A), and increased operating costs, despite higher production volumes.
For the full year, ConocoPhillips posted earnings of $9.2bn, or $7.81 per share, down from $11bn, or $9.06 per share, in 2023. Adjusted earnings for 2024 were also $9.2bn, or $7.79 per share, compared to $10.6bn, or $8.77 per share, the previous year.
ConocoPhillips’ Q4 2024 production reached 2,183 thousand barrels of oil equivalent per day (MBOED), an increase of 281MBOED from the same period in 2023. After adjusting for closed acquisitions and dispositions, production grew by 139MBOED, representing a 6% increase.
The Lower 48 region contributed 1,308MBOED, including 833MBOED from the Permian Basin, 296MBOED from the Eagle Ford, and 151MBOED from the Bakken.
For the full year, production stood at 1,987MBOED, up 161MBOED year-on-year. Excluding the impact of acquisitions and divestitures, production increased by 69MBOED, reflecting a 3% growth.
ConocoPhillips generated $20.1bn in cash from operating activities in 2024, with $20.3bn in cash from operations (CFO). The company returned $9.1bn to shareholders through $5.5bn in share repurchases and $3.6bn via ordinary dividends and variable return of cash (VROC).
ConocoPhillips chairman and CEO Ryan Lance said: “ConocoPhillips continued to deliver on our returns-focused value proposition in 2024, demonstrating strong operational execution, returning $9.1 billion to shareholders and enhancing our portfolio with the acquisition of Marathon Oil.
“Looking ahead, we are focused on achieving more than $1bn in integration-related run rate synergies by year-end, over half of which is already reflected in our announced capital guidance. We are starting the year with a $10bn return of capital target.”
