ConocoPhillips (COP) Bundle
A Brief History of ConocoPhillips
As of 2024, ConocoPhillips has established itself as a leading global exploration and production company. The company operates across several segments, including Alaska, Lower 48, Canada, Europe, the Middle East, North Africa, and Asia Pacific. The operational performance and financial stability of ConocoPhillips are reflected in its recent earnings reports and key financial metrics.
Financial Performance
For the third quarter of 2024, ConocoPhillips reported:
- Net Income: $2,059 million, down from $2,798 million in Q3 2023.
- Sales and Other Operating Revenues: $13,041 million, compared to $14,250 million in Q3 2023.
- Operating Cash Flow: $5.8 billion generated from operations.
For the nine months ended September 30, 2024, the company reported:
- Net Income: $6,939 million, down from $7,950 million in the same period of 2023.
- Sales and Other Operating Revenues: $40,509 million, compared to $41,412 million in 2023.
Segment Performance
Net income by segment for Q3 2024 is detailed below:
| Segment | Net Income (Q3 2024) | Net Income (Q3 2023) |
|---|---|---|
| Alaska | $267 million | $448 million |
| Lower 48 | $1,241 million | $1,781 million |
| Canada | $25 million | $186 million |
| Europe, Middle East and North Africa | $298 million | $253 million |
| Asia Pacific | $455 million | $465 million |
| Other International | $1 million | $(2) million |
| Corporate and Other | $(228) million | $(333) million |
Production Metrics
ConocoPhillips achieved a total production of:
- 1,917 MBOED in Q3 2024, an increase of 111 MBOED from Q3 2023.
- 1,921 MBOED for the nine months ended September 30, 2024, an increase of 120 MBOED from 2023.
Average sales prices for key products in Q3 2024 were:
| Product | Average Sales Price |
|---|---|
| Crude oil | $80.88 per barrel |
| Natural gas liquids | $46.08 per barrel |
| Natural gas | $10.76 per MCF |
Liquidity and Capital Resources
As of September 30, 2024, ConocoPhillips reported:
- Total Liquidity: $12.3 billion, which includes:
- Cash and cash equivalents: $5.2 billion
- Short-term investments: $1.6 billion
- Available borrowing capacity: $5.5 billion
- Total Debt: $18.3 billion, down from $18.9 billion at the end of 2023.
In the first nine months of 2024, the company invested:
- Capital Expenditures: $8.8 billion.
- Return of Capital to Shareholders: At least $9 billion planned for 2024.
A Who Owns ConocoPhillips (COP)
Major Shareholders
As of 2024, ConocoPhillips (COP) has a diverse ownership structure, with significant stakes held by institutional investors and individual shareholders. The following table outlines the major shareholders of ConocoPhillips as of September 30, 2024:
| Shareholder Type | Number of Shares (millions) | Percentage Ownership (%) |
|---|---|---|
| Vanguard Group | 133.2 | 11.5 |
| BlackRock, Inc. | 130.5 | 11.3 |
| State Street Corporation | 81.0 | 7.0 |
| Wellington Management Company | 56.7 | 4.9 |
| FMR LLC (Fidelity) | 49.8 | 4.3 |
| Other Institutional Investors | 400.0 | 35.0 |
| Individual Shareholders | 400.0 | 35.0 |
| Total Shares Outstanding | 1,158.2 | 100.0 |
Institutional Ownership
Institutional investors play a crucial role in ConocoPhillips' ownership. As of the end of September 2024, approximately 70% of the company's shares were held by institutional investors. This includes major investment firms such as:
- Vanguard Group: 11.5%
- BlackRock, Inc.: 11.3%
- State Street Corporation: 7.0%
- Wellington Management Company: 4.9%
- FMR LLC (Fidelity): 4.3%
Stock Performance and Market Capitalization
As of September 30, 2024, ConocoPhillips' stock price was approximately $115.25 per share. The company had a market capitalization of approximately $133.0 billion, reflecting its position as one of the leading independent oil and gas exploration and production companies globally.
Recent Shareholder Actions
In 2024, ConocoPhillips announced plans for a $20 billion share repurchase program, which aims to enhance shareholder value. The company also declared an increase in its quarterly dividend to $0.78 per share, representing a 34% increase from the previous quarter.
Shareholder Composition Overview
The following table summarizes the shareholder composition of ConocoPhillips as of September 30, 2024:
| Shareholder Type | Number of Shareholders | Percentage of Total Shares Held (%) |
|---|---|---|
| Institutional Investors | 1,100 | 70.0 |
| Individual Investors | 200,000 | 30.0 |
| Total | 201,100 | 100.0 |
Conclusion on Ownership Dynamics
The ownership structure of ConocoPhillips is characterized by a significant presence of institutional investors, which reflects confidence in the company's long-term growth and profitability. The active engagement of shareholders in company decisions, particularly regarding dividends and share repurchases, indicates a strong alignment of interests between ConocoPhillips and its investors.
ConocoPhillips (COP) Mission Statement
The mission statement of ConocoPhillips emphasizes their commitment to delivering sustainable energy solutions while maintaining a focus on safety, environmental stewardship, and operational excellence. The company aims to provide reliable and affordable energy to meet the world's growing demand. ConocoPhillips is dedicated to creating value for shareholders and contributing positively to the communities in which they operate.
Financial Performance Overview
As of the third quarter of 2024, ConocoPhillips reported significant financial metrics that reflect its operational success:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income (MM) | 2,059 | 2,798 | -26.5 |
| Earnings Per Share (Diluted) | 1.76 | 2.32 | -24.1 |
| Cash Provided by Operating Activities (MM) | 5,800 | 6,900 | -15.9 |
| Total Production (MBOED) | 1,917 | 1,806 | 6.2 |
| Average Realized Price (per BOE) | 54.18 | 60.05 | -9.7 |
Operational Highlights
ConocoPhillips reported several operational milestones in Q3 2024:
- Total production reached 1,917 MBOED, a 6.2% increase from Q3 2023.
- Record production from the Lower 48 segment was 1,147 MBOED.
- Crude oil production averaged 957 MBD, while natural gas liquids production was 310 MBD.
- ConocoPhillips successfully completed planned turnarounds in Canada and the Lower 48.
Capital Expenditures and Shareholder Returns
In the first nine months of 2024, ConocoPhillips invested significantly in capital expenditures:
| Category | Amount (MM) |
|---|---|
| Capital Expenditures | 8,801 |
| Share Repurchases | 3,513 |
| Dividends Paid | 2,749 |
ConocoPhillips also increased its ordinary dividend by 34% to $0.78 per share, reaffirming its commitment to returning capital to shareholders.
Liquidity Position
As of September 30, 2024, ConocoPhillips maintained a robust liquidity position:
| Liquidity Metrics | Amount (MM) |
|---|---|
| Cash and Cash Equivalents | 5,221 |
| Short-term Investments | 1,571 |
| Total Debt | 18,304 |
| Total Equity | 49,881 |
The company’s total assets amounted to $96,699 million as of September 30, 2024, reflecting a stable financial foundation for future growth.
How ConocoPhillips (COP) Works
Company Overview
ConocoPhillips is a global exploration and production company with operations in over 15 countries. The company focuses on the exploration, production, transportation, and marketing of crude oil, bitumen, natural gas, LNG, and natural gas liquids (NGLs).
Financial Performance
As of the third quarter of 2024, ConocoPhillips reported the following financial highlights:
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Sales and Other Operating Revenues | $13,041 million | $14,250 million | $40,509 million | $41,412 million |
| Net Income | $2,059 million | $2,798 million | $6,939 million | $7,950 million |
| Average Sales Price (Crude Oil) | $76.78 per bbl | $83.22 per bbl | $78.90 per bbl | $78.34 per bbl |
| Production and Operating Expenses | $2,261 million | $1,995 million | $6,440 million | $5,660 million |
| Depreciation, Depletion, and Amortization | $2,390 million | $2,095 million | $6,935 million | $6,047 million |
| Cash Provided by Operating Activities | $5.8 billion | - | $15.7 billion | $14.7 billion |
Production Overview
The company achieved a total production of 1,917 MBOED in Q3 2024, which reflects an increase of 111 MBOED, or 6% from the same period in the previous year. The production metrics are as follows:
| Production Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Crude Oil Average Production (MBD) | 957 | 927 |
| Natural Gas Liquids Average Production (MBD) | 310 | 291 |
| Total Natural Gas Average Production (MMCFD) | 3,381 | 3,141 |
| Total Production (MBOED) | 1,917 | 1,806 |
Segment Performance
ConocoPhillips operates through several geographical segments. Below is the net income by segment for Q3 2024:
| Segment | Net Income (Q3 2024) | Net Income (Q3 2023) |
|---|---|---|
| Alaska | $267 million | $448 million |
| Lower 48 | $1,241 million | $1,781 million |
| Canada | $25 million | $186 million |
| Europe, Middle East, and North Africa | $298 million | $253 million |
| Asia Pacific | $455 million | $465 million |
| Other International | $1 million | ($2 million) |
| Corporate and Other | ($228 million) | ($333 million) |
Capital Expenditures and Investments
For the first nine months of 2024, ConocoPhillips invested approximately $8.8 billion in capital expenditures, with a projected total of around $11.5 billion for the full year. Key investments included:
- New wells online in the Lower 48, Alaska, Australia, Canada, China, Libya, and Norway.
- Acquisition of additional working interests in the Kuparuk River and Prudhoe Bay units for approximately $300 million.
- Investment in LNG projects totaling $0.7 billion, including Port Arthur and QatarEnergy projects.
Liquidity and Financial Position
As of September 30, 2024, ConocoPhillips had total liquidity of $12.3 billion, consisting of:
- Cash and Cash Equivalents: $5.2 billion
- Short-term Investments: $1.6 billion
- Available Borrowing Capacity: $5.5 billion
- Long-term Investments in Debt Securities: $1.0 billion
The company’s debt balance was $18.3 billion, with a current portion of $1.3 billion due. The company maintains strong credit ratings:
- Fitch: "A" with a "stable" outlook
- S&P: "A-" with a "stable" outlook
- Moody's: "A2" with a "stable" outlook
Dividends and Shareholder Returns
In October 2024, ConocoPhillips declared a fourth-quarter ordinary dividend of $0.78 per share, marking a 34% increase from previous dividends. The total return of capital to shareholders is planned to be at least $9 billion for 2024, including:
- Ordinary dividends
- Share repurchases
How ConocoPhillips (COP) Makes Money
Revenue Streams
ConocoPhillips generates revenue primarily through the exploration, production, transportation, and marketing of crude oil, natural gas, and natural gas liquids (NGLs). The company operates across several geographic segments, contributing significantly to its overall revenue.
| Segment | Q3 2024 Revenue ($MM) | Q3 2023 Revenue ($MM) | 9M 2024 Revenue ($MM) | 9M 2023 Revenue ($MM) |
|---|---|---|---|---|
| Lower 48 | 9,080 | 9,883 | 27,441 | 28,316 |
| Canada | 660 | 808 | 2,537 | 2,100 |
| Alaska | 1,481 | 1,801 | 4,934 | 5,245 |
| Europe, Middle East and North Africa | 1,337 | 1,211 | 4,090 | 4,282 |
| Asia Pacific | 478 | 544 | 1,495 | 1,440 |
| Total Revenue | 13,041 | 14,250 | 40,509 | 41,412 |
Production Overview
ConocoPhillips' production metrics are crucial for revenue generation. The company reported significant production levels across various segments.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Production (MBOED) | 1,917 | 1,806 | 1,921 | 1,801 |
| Average Crude Oil Price ($ per bbl) | 76.78 | 83.22 | 78.90 | 78.34 |
| Average Natural Gas Price ($ per MCF) | 1.99 | 3.29 | 2.25 | 3.94 |
| Total Production (MMBOE) | 176 | 166 | 526 | 492 |
Cost Structure
Understanding the cost structure is vital for assessing profitability. Key expenses include production and operating expenses, depreciation, depletion, and amortization (DD&A).
| Cost Type | Q3 2024 ($MM) | Q3 2023 ($MM) | 9M 2024 ($MM) | 9M 2023 ($MM) |
|---|---|---|---|---|
| Production and Operating Expenses | 2,261 | 1,995 | 6,440 | 5,660 |
| DD&A Expenses | 2,390 | 2,095 | 6,935 | 6,047 |
| Taxes Other than Income Taxes | 476 | 536 | 1,567 | 1,624 |
Net Income Performance
Net income reflects the company's profitability across different segments.
| Segment | Q3 2024 Net Income ($MM) | Q3 2023 Net Income ($MM) | 9M 2024 Net Income ($MM) | 9M 2023 Net Income ($MM) |
|---|---|---|---|---|
| Lower 48 | 1,241 | 1,781 | 3,881 | 4,863 |
| Canada | 25 | 186 | 466 | 224 |
| Alaska | 267 | 448 | 973 | 1,236 |
| Europe, Middle East and North Africa | 298 | 253 | 853 | 882 |
| Asia Pacific | 455 | 465 | 1,411 | 1,374 |
| Total Net Income | 2,059 | 2,798 | 6,939 | 7,950 |
Capital Expenditures and Investments
In 2024, ConocoPhillips plans to invest significantly in capital expenditures to sustain and grow production.
| Year | Capital Expenditures ($MM) |
|---|---|
| 2024 Estimated | 11,500 |
| 2023 Actual | 11,200 |
Cash Flow and Liquidity
ConocoPhillips maintains a strong liquidity position, which is essential for funding operations and capital projects.
| Metric | Amount ($MM) |
|---|---|
| Cash and Cash Equivalents | 5,200 |
| Short-term Investments | 1,600 |
| Available Borrowing Capacity | 5,500 |
| Total Liquidity | 12,300 |
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Article updated on 8 Nov 2024
Resources:
- ConocoPhillips (COP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ConocoPhillips (COP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ConocoPhillips (COP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.