-
Completed the acquisition of Marathon Oil, adding high-quality, low cost of supply inventory adjacent to the company’s leading
U.S. unconventional position. -
Reported fourth-quarter 2024 earnings per share of
$1.90 and adjusted earnings per share of$1.98 . - Delivered 2024 preliminary reserve replacement ratio of 244% and preliminary organic reserve replacement ratio of 123%.
-
Announced planned 2025 return of capital target of
$10 billion at current commodity prices and declared first-quarter 2025 ordinary dividend of$0.78 per share. -
Provided 2025 guidance including full-year capital of approximately
$12.9 billion .
Full-year 2024 earnings were
“ConocoPhillips continued to deliver on our returns-focused value proposition in 2024, demonstrating strong operational execution, returning
Full-year summary and recent announcements
-
Generated cash provided by operating activities of
$20.1 billion and cash from operations (CFO) of$20.3 billion . -
Distributed
$9.1 billion to shareholders, including$5.5 billion through share repurchases and$3.6 billion through the ordinary dividend and variable return of cash (VROC). -
Ended the year with cash and short-term investments of
$6.4 billion and long-term investments of$1.1 billion . - Achieved 14% return on capital employed; 15% cash-adjusted return on capital employed.
-
Advanced previously announced
$2 billion disposition target by signing agreements to divest noncore Lower 48 assets of$0.6 billion , subject to customary closing adjustments and expected to close in the first half of 2025. - Delivered full-year total company and Lower 48 production of 1,987 thousand barrels of oil equivalent per day (MBOED) and 1,152 MBOED, respectively. Excluding one month of Marathon Oil production, the company and Lower 48 produced 1,955 MBOED and 1,124 MBOED, respectively.
-
Reached first production at Nuna in
Alaska and Bohai Phase 5 inChina in the fourth quarter and at Eldfisk North inNorway in the second quarter. -
Progressed global LNG strategy with a long-term regasification agreement at Zeebrugge LNG terminal in
Belgium and a long-term LNG sales agreement inAsia . -
Exercised preferential rights and acquired additional working interests in Alaska’s
Kuparuk River and Prudhoe Bay Units in the fourth quarter. - Completed debt transactions to simplify the company’s capital structure post the acquisition of Marathon Oil, extending the weighted average maturity and improving the weighted average coupon of the portfolio.
-
Achieved the
Oil and Gas Methane Partnership 2.0 Gold Standard designation in 2024.
Return of capital update
Fourth-quarter review
Production for the fourth quarter of 2024 was 2,183 MBOED, an increase of 281 MBOED from the same period a year ago. After adjusting for impacts from closed acquisitions and dispositions, fourth-quarter 2024 production increased 139 MBOED or 6% from the same period a year ago.
Lower 48 delivered production of 1,308 MBOED, including 833 MBOED from the Permian, 296 MBOED from the Eagle Ford and 151 MBOED from the Bakken.
Earnings decreased from the fourth quarter of 2023 as higher volumes were more than offset by nonrecurring acquisition-related transaction and integration expenses, lower prices and higher depreciation, depletion and amortization (DD&A). Adjusted earnings decreased as higher volumes were more than offset by lower prices, higher DD&A and increased operating costs.
The company’s total average realized price was
For the fourth quarter, cash provided by operating activities was approximately
Full-year review
Production for 2024 was 1,987 MBOED, an increase of 161 MBOED from the same period a year ago. After adjusting for impacts from closed acquisitions and dispositions, production increased 69 MBOED or 3% from the same period a year ago.
The company’s total average realized price during this period was
In 2024, cash provided by operating activities was
Reserves update
Preliminary 2024 year-end proved reserves are 7.8 billion barrels of oil equivalent (BBOE), with a preliminary reserve replacement ratio of 244%. Excluding closed acquisitions and dispositions, the preliminary organic reserve replacement ratio was 123%.
Final information related to the company’s 2024 oil and gas reserves will be provided in ConocoPhillips’ Annual Report on Form 10-K, to be filed with the
Outlook
The company’s 2025 production guidance is 2.34 to 2.38 million barrels of oil equivalent per day (MMBOED), which includes impacts of 20 MBOED from planned turnarounds. First-quarter 2025 production is expected to be 2.34 to 2.38 MMBOED, which includes impacts of 20 MBOED from January weather and 5 MBOED from turnarounds.
Guidance for 2025 includes capital expenditures of approximately
--- # # # ---
About
For more information, go to www.conocophillips.com.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements as defined under the federal securities laws. Forward-looking statements relate to future events, including, without limitation, statements regarding our future financial position, business strategy, budgets, projected revenues, costs and plans, objectives of management for future operations, the anticipated benefits of our acquisition of Marathon Oil Corporation (Marathon Oil), the anticipated impact of our acquisition of Marathon Oil on the combined company’s business and future financial and operating results and the expected amount and timing of synergies from our acquisition of Marathon Oil and other aspects of our operations or operating results. Words and phrases such as “ambition,” “anticipate,” “believe,” “budget,” “continue,” “could,” “effort,” “estimate,” “expect,” “forecast,” “goal,” “guidance,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “predict,” “projection,” “seek,” “should,” “target,” “will,” “would,” and other similar words can be used to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward- looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future performance and involve certain risks, uncertainties and other factors beyond our control. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in the forward-looking statements. Factors that could cause actual results or events to differ materially from what is presented include, but are not limited to, the following: effects of volatile commodity prices, including prolonged periods of low commodity prices, which may adversely impact our operating results and our ability to execute on our strategy and could result in recognition of impairment charges on our long-lived assets, leaseholds and nonconsolidated equity investments; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas, including changes as a result of any ongoing military conflict and the global response to such conflict, security threats on facilities and infrastructure, global health crises, the imposition or lifting of crude oil production quotas or other actions that might be imposed by
Cautionary Note to U.S. Investors – The
Use of Non-GAAP Financial Information – To supplement the presentation of the company’s financial results prepared in accordance with
The company believes that the non-GAAP measure adjusted earnings (both on an aggregate and a per-share basis), adjusted operating costs and adjusted corporate segment net loss are useful to investors to help facilitate comparisons of the company’s operating performance associated with the company’s core business operations across periods on a consistent basis and with the performance and cost structures of peer companies by excluding items that do not directly relate to the company’s core business operations. Adjusted earnings is defined as earnings removing the impact of special items. Adjusted EPS is a measure of the company’s diluted net earnings per share excluding special items. Adjusted operating costs is defined as the sum of production and operating expenses and selling, general and administrative expenses, adjusted to exclude expenses that do not directly relate to the company’s core business operations and are included as adjustments to arrive at adjusted earnings to the extent those adjustments impact operating costs. Adjusted corporate segment net loss is defined as corporate and other segment earnings adjusted for special items. The company further believes that the non-GAAP measure CFO is useful to investors to help understand changes in cash provided by operating activities excluding the timing effects associated with operating working capital changes across periods on a consistent basis and with the performance of peer companies. ROCE is a measure of the profitability of the company’s capital employed in its business operations. The company calculates ROCE as a ratio, the numerator of which is net income, and the denominator of which is average total equity plus average total debt. The net income is adjusted for after-tax interest expense, for the purposes of measuring efficiency of debt capital used in operations; net income is also adjusted for non-operational or special items impacts to allow for comparability in the long-term view across periods. The company believes ROCE is a good indicator of long-term company and management performance as it relates to capital efficiency, both absolute and relative to the company’s primary peer group. The basis of cash adjusted ROCE utilizes ROCE as defined above and further adjusts for cash and cash equivalents, restricted cash, and short-term investments as well as the after-tax interest income generated by these capital sources, as the company may retain these sources for other strategic purposes and not fully employ such capital for use in operations. As such, cash adjusted ROCE is useful for comparability across periods that may be cyclically impacted by significant cash-related transactions. The company believes that the above-mentioned non-GAAP measures, when viewed in combination with the company’s results prepared in accordance with GAAP, provides a more complete understanding of the factors and trends affecting the company’s business and performance. The company’s Board of Directors and management also use these non-GAAP measures to analyze the company’s operating performance across periods when overseeing and managing the company’s business.
Each of the non-GAAP measures included in this news release and the accompanying supplemental financial information has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the company’s results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the company’s presentation of non-GAAP measures in this news release and the accompanying supplemental financial information may not be comparable to similarly titled measures disclosed by other companies, including companies in our industry. The company may also change the calculation of any of the non-GAAP measures included in this news release and the accompanying supplemental financial information from time to time in light of its then existing operations to include other adjustments that may impact its operations.
Reconciliations of each non-GAAP measure presented in this news release to the most directly comparable financial measure calculated in accordance with GAAP are included in the release.
Other Terms – This news release also contains the term proforma underlying production. Proforma underlying production reflects the impact of closed acquisitions and closed dispositions as of
References in the release to earnings refer to net income.
|
Table 1: Reconciliation of earnings to adjusted earnings $ millions, except as indicated |
||||||||||||||||||||||||||||||||||||||||||||||||
|
4Q24 |
|
4Q23 |
|
2024 FY |
|
2023 FY |
||||||||||||||||||||||||||||||||||||||||||
|
Pre-tax |
|
Income tax |
|
After- Tax |
|
Per share
common
|
|
Pre-tax |
|
Income tax |
|
After- tax |
|
Per share
common
|
|
Pre-tax |
|
Income tax |
|
After- tax |
|
Per share
common
|
|
Pre-tax |
|
Income tax |
|
After- tax |
|
Per share
common
|
||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
| Earnings |
|
|
$ |
2,306 |
|
$ |
1.90 |
|
|
|
3,007 |
|
2.52 |
|
|
|
9,245 |
|
7.81 |
|
|
|
10,957 |
|
9.06 |
|
||||||||||||||||||||||
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| (Gain) loss on asset sales¹ |
— |
|
— |
|
|
— |
|
|
— |
|
— |
— |
|
— |
|
— |
|
(86 |
) |
20 |
|
(66 |
) |
(0.06 |
) |
(94 |
) |
(6 |
) |
(100 |
) |
(0.08 |
) |
|||||||||||||||
| Tax adjustments |
— |
|
— |
|
|
— |
|
|
— |
|
— |
(203 |
) |
(203 |
) |
(0.17 |
) |
— |
|
(76 |
) |
(76 |
) |
(0.06 |
) |
— |
|
(347 |
) |
(347 |
) |
(0.30 |
) |
|||||||||||||||
| Deferred tax adjustments |
— |
|
(28 |
) |
|
(28 |
) |
|
(0.02 |
) |
— |
— |
|
— |
|
— |
|
— |
|
(28 |
) |
(28 |
) |
(0.02 |
) |
— |
|
— |
|
— |
|
— |
|
|||||||||||||||
| Tax adjustment - acquisition related |
— |
|
(423 |
) |
|
(423 |
) |
|
(0.36 |
) |
— |
— |
|
— |
|
— |
|
— |
|
(423 |
) |
(423 |
) |
(0.36 |
) |
— |
|
— |
|
— |
|
— |
|
|||||||||||||||
| Transaction and integration expenses² |
514 |
|
(70 |
) |
|
444 |
|
|
0.37 |
|
— |
— |
|
— |
|
— |
|
542 |
|
(76 |
) |
466 |
|
0.39 |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||||||
| (Gain) loss on FX derivative |
— |
|
— |
|
|
— |
|
|
— |
|
73 |
(15 |
) |
58 |
|
0.05 |
|
— |
|
— |
|
— |
|
— |
|
132 |
|
(27 |
) |
105 |
|
0.09 |
|
|||||||||||||||
| (Gain) loss on debt extinguishment |
173 |
|
(26 |
) |
|
147 |
|
|
0.12 |
|
— |
— |
|
— |
|
— |
|
173 |
|
(26 |
) |
147 |
|
0.12 |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||||||
| (Gain) loss in interest rate hedge³ |
(35 |
) |
7 |
|
|
(28 |
) |
|
(0.02 |
) |
— |
— |
|
— |
|
— |
|
(35 |
) |
7 |
|
(28 |
) |
(0.02 |
) |
— |
|
— |
|
— |
|
— |
|
|||||||||||||||
| Pending claims and settlements |
(16 |
) |
(33 |
) |
|
(49 |
) |
|
(0.04 |
) |
— |
— |
|
— |
|
— |
|
(16 |
) |
(33 |
) |
(49 |
) |
(0.04 |
) |
— |
|
— |
|
— |
|
— |
|
|||||||||||||||
| Impairments |
47 |
|
(11 |
) |
|
36 |
|
|
0.03 |
|
— |
— |
|
— |
|
— |
|
47 |
|
(11 |
) |
36 |
|
0.03 |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||||||
| Adjusted earnings / (loss) |
|
$ |
2,405 |
|
$ |
1.98 |
|
2,862 |
|
2.40 |
|
9,224 |
|
7.79 |
|
10,615 |
|
8.77 |
|
|||||||||||||||||||||||||||||
|
¹Includes 3Q23 divestiture of Lower 48 equity investment. ²Includes $20MM pre-tax of other expenses in addition to the adjustments to operating costs shown in Table 5. ³Interest rate hedging (gain) loss from PALNG Phase 1 investment. The income tax effects of the special items are primarily calculated based on the statutory rate of the jurisdiction in which the discrete item resides. |
||||||||||||||||||||||||||||||||||||||||||||||||
|
Table 2: Reconciliation of net cash provided by operating activities to cash from operations $ millions, except as indicated |
|
||||
|
|
4Q24 |
2024 FY |
|||
|
Net Cash Provided by Operating Activities |
4,457 |
|
20,124 |
|
|
|
Adjustments: |
|
|
|||
|
Net operating working capital changes |
(962 |
) |
(181 |
) |
|
|
Cash from operations |
5,419 |
|
20,305 |
|
|
|
Table 3: Return on capital employed (ROCE) and cash adjusted ROCE $ millions, except as indicated |
|||||||||||
|
|
ROCE |
CASH ADJUSTED ROCE |
|||||||||
|
Numerator |
2024 FY |
2023 FY |
2024 FY |
2023 FY |
|||||||
|
Net Income (loss) |
9,245 |
|
10,957 |
|
9,245 |
|
10,957 |
|
|||
|
Adjustment to exclude special items |
(21 |
) |
(342 |
) |
(21 |
) |
(342 |
) |
|||
|
After-tax interest expense |
631 |
|
616 |
|
631 |
|
616 |
|
|||
|
After-tax interest income |
— |
|
— |
|
(318 |
) |
(324 |
) |
|||
|
ROCE Earnings |
9,855 |
|
11,231 |
|
9,537 |
|
10,907 |
|
|||
|
Denominator |
|
|
|
|
|||||||
|
Average total equity¹ |
51,497 |
|
47,925 |
|
51,497 |
|
47,925 |
|
|||
|
Average total debt² |
19,176 |
|
17,470 |
|
19,176 |
|
17,470 |
|
|||
|
Average total cash³ |
— |
|
— |
|
(6,591 |
) |
(8,444 |
) |
|||
|
Average capital employed |
70,673 |
|
65,395 |
|
64,082 |
|
56,951 |
|
|||
|
ROCE (percent) |
14 |
% |
17 |
% |
|
15 |
% |
|
19 |
% |
|
|
¹Average total equity is the average of beginning total equity and ending total equity by quarter.
|
|||||||||||
|
Table 4: Reconciliation of reported production to proforma underlying production MBOED, except as indicated |
||||||||||
|
|
4Q24 |
|
4Q23 |
|
2024 FY |
|
2023 FY |
|||
|
Total Reported ConocoPhillips Production |
2,183 |
|
1,902 |
1,987 |
|
1,826 |
|
|||
|
Closed Dispositions¹ |
— |
|
— |
— |
|
(1 |
) |
|||
|
Closed Acquisitions² |
268 |
|
410 |
366 |
|
459 |
|
|||
|
Total proforma underlying production |
2,451 |
|
2,312 |
2,353 |
|
2,284 |
|
|||
|
Total proforma underlying production % change |
6 |
% |
|
3 |
% |
|
||||
|
|
||||||||||
|
Production from Marathon Oil included in Total Reported Production³ |
126 |
|
— |
32 |
|
— |
|
|||
|
|
||||||||||
|
Production from Marathon Oil included in proforma underlying production |
392 |
|
404 |
394 |
|
405 |
|
|||
|
Production % change excluding impact of Marathon Oil from proforma underlying production |
8 |
% |
|
4 |
% |
|
||||
|
¹Includes production related to various Lower 48 dispositions.
|
||||||||||
|
Table 5: Reconciliation of production and operating expenses to adjusted operating costs $ millions, except as indicated |
||||
|
|
|
2025 FY |
||
|
|
2024 FY |
Guidance ($B) |
||
|
Production and Operating Expenses |
8,751 |
|
10.3 - 10.6 |
|
|
Selling, general and administrative (G&A) expenses |
1,158 |
|
0.7 - 0.8 |
|
|
Operating Costs |
9,909 |
|
11.0 - 11.4 |
|
|
Adjustments to exclude special items: |
|
|
||
|
Transaction and integration expenses |
(522 |
) |
(0.1) - (0.3) |
|
|
Adjusted operating costs |
9,387 |
|
10.9 - 11.1 |
|
|
|
||||
|
Table 6: Reconciliation of adjusted corporate segment net loss $ millions, except as indicated |
|
|||
|
|
|
|
2025 FY |
|
|
|
2024 FY |
|
Guidance ($B) |
|
|
Corporate and Other Earnings |
(880 |
) |
~(1.2) |
|
|
Adjustments to exclude special items: |
|
|
||
|
Transaction and integration expenses |
499 |
|
~0.1 |
|
|
Pending claims and settlements |
(16 |
) |
— |
|
|
(Gain) loss on interest rate hedge |
(35 |
) |
— |
|
|
(Gain) loss on debt extinguishment |
173 |
|
— |
|
|
Income tax on special items |
(570 |
) |
— |
|
|
Adjusted corporate segment net loss |
(829 |
) |
~(1.1) |
|
|
|
|
|
|
Table 7: Calculation of reserve replacement ratio |
|
|
|
MMBOE, except as indicated |
|
|
|
End of 2023 |
6,758 |
|
|
End of 2024 |
7,812 |
|
|
Change in reserves |
1,054 |
|
|
Production¹ |
732 |
|
|
Change in reserves excluding production¹ |
1,786 |
|
|
2024 preliminary reserve replacement ratio |
244 |
% |
|
Production¹ |
732 |
|
|
Purchases² |
(891 |
) |
|
Sales² |
5 |
|
|
Changes in reserves excluding production¹, purchases², and sales² |
900 |
|
|
2024 preliminary organic reserve replacement ratio |
123 |
% |
|
¹Production includes fuel gas.
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250204791806/en/
281-293-1149
dennis.nuss@conocophillips.com
Investor Relations
281-293-5000
investor.relations@conocophillips.com
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