ConocoPhillips (COP) is starting the day strong, with its shares surging in pre-market trading after the company delivered impressive third-quarter results. The oil and gas giant exceeded analysts’ expectations on both revenue and adjusted earnings per share, signaling a healthy financial performance.
Here’s a breakdown of the key highlights:
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Strong Revenue and Earnings:
ConocoPhillips generated revenue of $13.604 billion for the quarter, slightly missing the consensus estimate of $14.018 billion. However, the company’s adjusted earnings per share (EPS) of $1.78 comfortably surpassed the consensus of $1.64, demonstrating robust profitability.*
Robust Cash Flow:
ConocoPhillips generated a substantial $5.8 billion in operating cash flow during the quarter. The company allocated a significant portion of this cash flow towards capital expenditures and investments, totaling $2.9 billion.*
Rewarding Shareholders:
ConocoPhillips is rewarding its shareholders with a generous dividend increase. The company raised its quarterly dividend per share by a substantial 34% to $0.78, payable on December 2, 2024. Furthermore, the Board of Directors approved an increase to the existing share repurchase authorization by a hefty $20 billion, demonstrating the company’s commitment to shareholder value.*
Production Growth:
ConocoPhillips saw strong production growth, reaching 1,917 thousand barrels of oil equivalent per day (MBOED), representing an increase of 111 MBOED compared to the same period last year. Notably, the Permian Basin, a key area of production, contributed significantly to this growth.*
Positive Outlook:
ConocoPhillips remains optimistic about its future prospects. The company anticipates third-quarter production to be between 1.99-2.03 million barrels of oil equivalent per day (MMBOED). Additionally, the company raised its full-year 2024 production outlook to 1.94-1.95 MMBOED. ConocoPhillips also reiterated its capital expenditure guidance of approximately $11.5 billion.*
Acquisition on Track:
ConocoPhillips is progressing well with its planned acquisition of Marathon Oil, with expectations to complete the deal within the current quarter. The company anticipates exceeding its initial synergy guidance of $500 million.
Investor Opportunities:
Investors interested in gaining exposure to COP stock can consider ETFs like the Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (OILT) and the IShares U.S. Oil & Gas Exploration & Production ETF (IEO).The positive news from ConocoPhillips has sent its shares soaring in pre-market trading, gaining 2.95% to reach $106.02. The company’s strong financial performance, shareholder-friendly initiatives, and positive outlook signal a promising future for ConocoPhillips and its investors.
