ConocoPhillips’ (COP) second-quarter 2024 results showcase impressive production gains and robust earnings. The oil and gas giant reported an adjusted earnings per share (EPS) of $1.98, up from $1.84 in the same period last year, surpassing the analysts’ consensus estimate of $1.96. Revenue also rose to $14.1 billion from $12.9 billion, although it fell short of the $15.1 billion forecast.
COP’s Boost in Production
One key highlight from the quarter was the increase in production. ConocoPhillips averaged 1,945 thousand barrels of oil equivalent per day (MBoe/d), a nice bump from last year’s 1,805 MBoe/d. Nearly half of this was crude oil, with production hitting 955 thousand barrels per day (MBbls/d), up from 931 MBbls/d in the same period last year. This boost was mainly thanks to higher outputs in the Lower 48 and Canada.
The average realized price per barrel also rose to $56.56, up from last year’s $54.50. Crude oil specifically saw an average price of $81.30 per barrel, an increase from $74.19. However, natural gas prices dipped to $4.22 per thousand cubic feet from $5.04 last year.
ConocoPhillips’ Rising Costs and Expenses
Total expenses climbed to $10.5 billion from $9.5 billion a year ago. The cost of purchased commodities rose to $4.9 billion from $4.6 billion, and exploration costs jumped to $102 million from $83 million. Despite these increases, total expenses were still below projections of $10.8 billion.
Capital and Cash Flow
As of June 30, 2024, ConocoPhillips had $4.3 billion in cash and cash equivalents. The company’s total long-term debt stood at $17.04 billion, with an additional $1.3 billion in short-term debt. Capital expenditures and investments for the quarter totaled $2.97 billion, while net cash provided by operating activities was a solid $4.9 billion.
COP’s Future Outlook
Looking ahead, ConocoPhillips expects third-quarter production to be between 1.87 and 1.91 MBoe/d. For the full year, the company has adjusted its production guidance to 1.93-1.94 MBoe/d, slightly tightening from the previous range of 1.91-1.95 MBoe/d. Capital expenditures for 2024 are now expected to reach $11.5 billion, reflecting strong progress on the Willow project—a major oil development initiative in Alaska—and increased activity in the Lower 48, which refers to the oil and gas operations across the continental U.S.
