ConocoPhillips doubles Q2 net earnings

US major ConocoPhillips said August 4 it had Q2 2022 earnings of $5.1bn, more than double earnings of $2.1bn in the same period a year ago and confirmed it would increase capital returns to shareholders this year to $15bn via dividends and share buybacks.

“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,” CEO Ryan Lance said. “We’re increasing our targeted 2022 return to shareholders by an additional $5bn while taking steps to meet transition demand with recent announcements to expand our global LNG portfolio.”

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The company also announced a Q3 ordinary dividend of $0.46/share and a Q4 variable return of cash dividend of $1.40/share.

Cash provided by operating activities in Q2 increased to $7.9bn from $4.3bn a year ago, while capital expenditures rose to $1.97bn from $1.3bn.

Total production for the quarter averaged 871,000 barrels of oil equivalent (boe)/day, a modest increase over Q2 2021 production of 849,000 boe/day. Natural gas production dipped slightly, to 3.1bn ft³/day from 3.26bn ft³/day, with gains from equity affiliates more than offset by reduced production from consolidated operations.

The company’s average realised price for natural gas in the second quarter jumped to $10.15/’000 ft³ from $4.16/’000 ft³ a year ago, while its total realised price for crude oil soared to $111.50/barrel from $65.51/b. All of ConocoPhillips’ production remains unhedged, allowing it to take advantage of robust global energy commodity prices.