ConocoPhillips (NYSE: COP) booked higher-than-expected earnings for the second quarter as its oil and gas production rose to a record and oil prices increased.
The U.S. oil and gas firm reported on Thursday adjusted earnings of $2.3 billion, or $1.98 per share, beating the analyst consensus estimate of $ 1.96 per share earnings compiled by The Wall Street Journal.
The adjusted earnings were higher than the Q2 2023 result of $1.84 EPS.
ConocoPhillips's production was 1.945 million barrels of oil per day (boepd) for the second quarter of 2024, up by 140,000 boepd from the same period a year ago.
Lower 48 delivered production of 1.1 million boepd for ConocoPhillips, including 748,000 boepd from the Permian, 238,000 boepd from the Eagle Ford, and 105,000 boepd from the Bakken.
Higher prices also helped ConocoPhillips book higher earnings for the second quarter of 2024.
The company's total average realized price was $56.56 per barrel of oil equivalent (boe), 4% higher than the $54.50 per boe realized in the second quarter of 2023.
"In the second quarter, we continued to deliver on our returns-focused value proposition, achieving record production and advancing our global LNG strategy," said Ryan Lance, chairman and chief executive officer.
"We announced a 34% increase in our ordinary dividend starting in the fourth quarter and remain committed to returning at least $9 billion of capital for 2024."
ConocoPhillips is set to become a much larger company as it is currently in the process of acquiring Marathon Oil in an all-stock deal with an enterprise value of $22.5 billion, inclusive of $5.4 billion of net debt.
Last month, ConocoPhillips said that the U.S. Federal Trade Commission (FTC) had sent a second request for additional information to ConocoPhillips and Marathon Oil while reviewing their proposed merger.
Commenting on the progress of the acquisition, Lance said today "Our previously announced plan to acquire Marathon Oil is progressing, and we expect to close late in the fourth quarter."
By Charles Kennedy for Oilprice.com
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