ConocoPhillips slips after Q4 miss; shareholder return program a bit light

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ConocoPhillips (NYSE:COP) -0.3% pre-market Thursday after reporting Q4 adjusted earnings that missed expectations.

The company said it planned to return $11B to shareholders, including a quarterly ordinary dividend of $0.51/share and a variable return of cash of $0.60/share, which may have fallen short of some investors' expectations.

Q4 net income climbed to $3.2B, or $2.61 a share, from $2.6B, or $1.98/share, in the year-earlier quarter.

Q4 adjusted production fell 0.2% Y/Y to 1.76M boe/day, primarily due to weather and downtime impacts in Lower 48.

Conoco's (COP) total average realized price for the quarter rose 8.4% Y/Y to $71.05/boe; since production remains unhedged, the company said it realized all changes in market prices.

Preliminary 2022 year-end proved reserves totaled 6.6B boe, with a total reserve replacement ratio of 176%.

Conoco (COP) said it expects FY 2023 capex of $10.7B-$11.3B, which includes $9.1B-$9.3B for base capital and $1.6B-$2B for anticipated major project spending at NFE, NFS, PALNG and Willow.

FY 2023 production guidance is 1.76M-1.8M boe/day, with Q1 output forecast at 1.72M-1.76M boe/day.

The company said it received and is reviewing the Bureau of Land Management's final supplemental environmental impact statement for the Willow project.

ConocoPhillips (COP) shares have gained 4% so far this year and 32.5% during the past year.

Comments

[Jimmy Cat Meow]

Not good at controlling capex.

[Rex Rode]

Great management! As good as it's been the last 2 years I believe the best is yet to come for COP. Nothing terrible with an annualized 4-5% dividend with this kind of growth. Have owned it since $25 when it bottomed out during Covid and the game of chicken between the Saudis and Russia. This has made putting gas in my cars painless.

[Mmarrkk]

It will be an interesting day. Good to see Willow moving forward.