US company ConocoPhillips posted record profits in 2022 of $18.7 billion, or $14.57 per share, benefiting from higher prices in the wake of Russia’s invasion of Ukraine.
Last year’s profits compare to $8.1 billion, or $6.07 per share, the company achieved in 2021, according to a press release seen by the specialized energy platform.
The company paid out $5.7 billion in ordinary dividends and variable cash dividends, repurchased $9.3 billion in stock, and paid off $3.3 billion in debt.
The company, which produces US shale oil, reported profits of $3.2 billion, or $2.61 per share, in the fourth quarter of 2022, compared to $2.6 billion, or $1.98 per share, a year earlier.
Commitment to carbon neutrality
Chairman and CEO Ryan Lance commented on last year’s performance, saying: “In 2022, ConocoPhillips celebrated 10 years as an independent exploration and production company, with strong financial and operating results across all of our businesses, thanks to hard work and dedication. by our talented workforce.
He added, “We returned $15 billion in capital to shareholders and achieved record production, while adding new high-quality strategic projects to bolster our global portfolio for decades to come.”
He said, “Building on 60 years of global experience in the field of LNG, we have expanded our LNG business in Australia, Germany, Qatar and along the US Gulf Coast, and have also set a new target for methane emissions intensity to support our continued focus on low production of greenhouse gases.”
“As we enter our second decade, we remain committed to our triple mandate of responsibly and reliably meeting the demand for the energy transition, delivering competitive returns on capital, and realizing our ambitions for carbon neutrality,” continued Lance.
“Our deep and diversified portfolio of low cost of supply assets continues to generate strong cash flow, enabling us to start the year with a target capital return of $11 billion,” he concluded.
Results for the fourth quarter of 2022
ConocoPhillips produced 1.758 million barrels of oil equivalent per day in the fourth quarter of 2022, an increase of 150,000 barrels per day over the same period in 2021.
The company said that the average total price achieved was $71.05 per barrel of oil equivalent, up 8% from $65.56 per barrel achieved in the fourth quarter of 2021.
Cash provided from operating activities amounted to $6.6 billion for the fourth quarter of 2022, and the company funded $2.5 billion in capital expenditures and investments.
The company distributed $2.4 billion in ordinary and variable cash dividends, and repurchased $2.7 billion in stock.
ConocoPhillips results in 2022
ConocoPhillips stated – in its business results report – that it achieved a total production estimated at 1.738 million barrels of oil equivalent per day in 2022, an increase of 171 thousand barrels per day over the same period in 2021.
The average total price achieved for the year 2022 was about $79.82 per barrel of oil equivalent, up 46% from $54.63 per barrel achieved in 2021, which reflects higher prices.
The cash provided by operating activities in 2022 amounted to about $28.3 billion, and the company financed $10.2 billion in capital expenditures and investments.
The company also declared a regular quarterly dividend of $0.51 per share, payable on March 1, 2023, to stockholders of record at the close of business on February 14, 2023.
In addition, the Company announced a variable cash dividend of $0.60 per share, payable on April 14, 2023, to stockholders of record with close of business on March 29, 2023.
ConocoPhillips outlook for 2023
ConocoPhillips announced that its planned return of capital to shareholders for 2023 is valued at $11 billion.
The company indicated that confirmed primary reserves by the end of 2022 amounted to about 6.6 billion barrels of oil equivalent, with a total reserve replacement rate of 176%, including closed acquisitions and disposals and market factors.
Looking ahead, ConocoPhillips’ capital spending guidance is in the range of $10.7 billion to $11.3 billion, which includes spending on major projects, development drilling programs, exploration and appraisal drilling, Scope 1 and 2 reduction projects, and financing of several investments. Opportunities in the early stages are low carbon.
The company’s production guidance for 2023 is between 1.76 and 1.80 million barrels of oil equivalent per day.
Production for the first quarter of 2023 is expected to range between 1.72 million bpd and 1.76 million bpd.
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