ConocoPhillips Raises Shareholder Payout By $5B On Profit Surge

ConocoPhillips (NYSE: COP) lifted its 2022 shareholder returns by $5 billion after reporting on Thursday tripled earnings from a year earlier, beating analyst expectations.

Thanks to higher oil and gas prices, the U.S. producer joins other majors in boosting the return of capital to shareholders after raising its planned 2022 return of capital by $5 billion to $15 billion.

The increased return to shareholders comes after ConocoPhillips reported today adjusted earnings of $5.1 billion, or $3.91 per share, for the second quarter, compared with second-quarter 2021 adjusted earnings of $1.7 billion, or $1.27 per share.

The Q2 2022 earnings per share beat the analyst consensus of $3.86 compiled by the Wall Street Journal.

"The second quarter delivered strong financial results and presented outstanding opportunities to accelerate progress on our Triple Mandate to reliably and responsibly deliver oil and gas production to meet energy transition pathway demand, deliver competitive returns on and of capital for our shareholders, and achieve our net-zero operational emissions ambition," chairman and CEO Ryan Lance said.

Higher realized prices were the key drivers of the jump in Q2 earnings, with a total average realized price of $88.57 per barrel of oil equivalent (boe). This was 77% higher than the $50.03 per BOE realized in the second quarter of 2021, "as production remains unhedged and thus realizes the full impact of changes in marker prices," ConocoPhillips said.

Company shares jumped by more than 2.5% in pre-market trade after the results announcement.

ConocoPhillips is the latest large oil and gas firm to report blockbuster earnings for the second quarter on the back of rallying oil and gas prices.

Last week, U.S. supermajors ExxonMobil and Chevron both reported their highest-ever quarterly profits. BP increased its quarterly dividend by 10% and extended share buybacks, Shell reported a record quarterly profit for a second consecutive quarter, while TotalEnergies more than doubled its Q2 net income due to rallying oil and gas prices, record-high refining margins, and soaring LNG demand in Europe.  

By Tsvetana Paraskova for Oilprice.com

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