ConocoPhillips's production narrowly beats analyst estimate, but profit falls slightly short

By Steve Gelsi

Oil major plans to return $9 billion to shareholders through dividends and stock buybacks in 2024

ConocoPhillips's stock fell 0.6% on Thursday after its adjusted first-quarter profit slightly missed analyst estimates, while its production came in slightly ahead of Wall Street's forecast.

ConocoPhillips (COP) said its first-quarter profit fell to $2.6 billion, or $2.15 per share, from $2.9 billion, or $2.38 per share, in the year-ago quarter.

Adjusted profit excluding one-time items fell to $2.03 per share from $2.38 per share, missing the FactSet consensus estimate of $2.04 a share.

Total company production of 1,902 thousand barrels of oil equivalent per day (MBOED) slightly beat the analyst estimate of 1,901.1 MBOED.

Chief Executive Ryan Lance said the oil and gas producer "started the year on a strong note."

Looking ahead, ConocoPhillips predicts second-quarter production of 1,910 to 1,950 MBOED, while analysts currently estimate production of 1,937.3 MBOED.

ConocoPhillips said it plans to return $9 billion in capital to shareholders in 2024 through dividends and stock buybacks.

In the first quarter, ConocoPhillips distributed $2.2 billion to shareholders, including $1.3 billion in stock buybacks and $900 million in ordinary dividends and variable return of cash (VROC).

The oil company also said its first major winter construction season at Willow in Alaska was successful. It also worked on developing liquid natural gas projects in the U.S. and Qatar.

Prior to Thursday's trades, ConocoPhillips's stock was up 7.1% in 2024, compared to a 5.2% rise by the S&P 500 SPX.

-Steve Gelsi

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05-02-24 1041ET

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