On February 8, 2024, ConocoPhillips (COP, Financial), a leading independent exploration and production company, released its 8-K filing, detailing its financial performance for the fourth quarter and full year of 2023. The company, which operates globally with a focus on Alaska, the Lower 48 in the United States, Norway, and several countries in Asia-Pacific and the Middle East, reported a slight decrease in earnings for the fourth quarter compared to the same period in the previous year. Despite this, ConocoPhillips achieved record production levels and maintained a strong capital return program.
ConocoPhillips (COP, Financial) reported fourth-quarter earnings of $3.0 billion, or $2.52 per share, compared with $3.2 billion, or $2.61 per share, in the fourth quarter of 2022. Full-year earnings for 2023 were $11.0 billion, or $9.06 per share, a decrease from the $18.7 billion, or $14.57 per share, reported in 2022. Adjusted for special items, the fourth-quarter earnings were $2.9 billion, or $2.40 per share, and full-year adjusted earnings were $10.6 billion, or $8.77 per share.
ConocoPhillips (COP, Financial) achieved a 123% preliminary reserve replacement ratio, signaling robust resource management and future production potential. The company's production for the fourth quarter of 2023 was 1,902 MBOED, marking a 144 MBOED increase from the previous year. This production growth was attributed to strategic acquisitions and operational milestones, including the acquisition of the remaining 50% interest in Surmont and the final investment decision on the Willow project in Alaska.
Despite the challenges posed by lower commodity prices, which saw an 18% decrease in the company's average realized price per BOE compared to the fourth quarter of 2022, ConocoPhillips (COP, Financial) demonstrated financial resilience. The company generated $20.0 billion in cash from operating activities and $21.3 billion in CFO for the full year. It also distributed $11.0 billion to shareholders through dividends and share repurchases, underscoring its commitment to returning value to investors.
Looking ahead, ConocoPhillips (COP, Financial) has set a capital expenditure guidance of $11.0 to $11.5 billion for 2024, with production expected to range between 1.91 to 1.95 MMBOED. The company's focus remains on delivering competitive returns on capital, advancing its net-zero operational emissions ambition, and meeting the demands of the energy transition pathway.
ConocoPhillips (COP, Financial) is positioned to continue its trajectory of financial and operational success, with a deep and diversified portfolio that supports robust cash flow generation. The company's strategic investments and operational efficiencies have laid a strong foundation for sustainable growth and shareholder returns in the years to come.
Investors and stakeholders can expect ConocoPhillips (COP, Financial) to maintain its disciplined approach to capital management, as evidenced by its planned $9 billion return of capital in 2024, which includes an ordinary dividend of $0.58 per share and a variable return of cash (VROC) of $0.20 per share.
For more detailed information on ConocoPhillips (COP, Financial)'s financial performance and strategic outlook, interested parties are encouraged to review the full 8-K filing and listen to the company's conference call, which can be accessed through ConocoPhillips' investor relations website.
Explore the complete 8-K earnings release (here) from ConocoPhillips for further details.
