(Oil Price)– ConocoPhillips (NYSE: COP) is raising its ordinary dividend and share buyback program as its third-quarter earnings beat market expectations on the back of higher total oil and gas production and record output in the U.S. shale patch.
The U.S. oil and gas producer reported on Thursday adjusted earnings per share of $1.78 for the third quarter, down from $2.16 EPS a year earlier, but above the analyst consensus estimate of $1.65 compiled by The Wall Street Journal.
Higher crude oil and natural gas production helped ConocoPhillips offset the lower oil and gas prices compared to last year.
The impact of lower oil and gas prices was evident in the company’s total average realized price, which was $54.18 per barrel of oil equivalent (boe), 10% lower than the $60.05 per boe realized in the third quarter of 2023.
But ConocoPhillips’s production for the third quarter of 2024 averaged 1.917 million barrels of oil equivalent per day (boed), up by 3% from the same period a year ago when adjusted for closed acquisitions and dispositions.
The producer achieved record Lower 48 production of 1.147 million boed, including 781,000 boed from the Permian, 246,000 boed from the Eagle Ford, and 107,000 boed from the Bakken.
Total fourth-quarter 2024 production is expected to be 1.99-2.03 million boed, ConocoPhillips said, as it also raised its full-year production guidance to 1.94-1.95 million boed, as compared to prior guidance of 1.93 million boed to 1.94 million boed.
ConocoPhillips’s board has decided to raise its ordinary dividend by 34% to $0.78 per share and increase the existing share repurchase authorization by up to $20 billion.
The company is on track to distribute at least $9 billion to shareholders for 2024, chairman and CEO Ryan Lance said.
ConocoPhillips continues to anticipate closing the planned acquisition of Marathon Oil this quarter and expects to significantly exceed its initial $500 million synergy guidance, the executive added.
Following the results release, shares in ConocoPhillips jumped by 3% in pre-market trade in New York.
By Charles Kennedy for Oilprice.com
