ConocoPhillips Doubles Profit to $4 Billion, Raises Dividend

ConocoPhillips more than doubled its third-quarter profit to $4 billion and raised its quarterly dividend by 11% on Thursday, joining a growing list of oil majors reporting enormous earnings gains as higher crude prices offset production disruptions caused by the Iran war.The Houston-based producer reported adjusted earnings of $3.27 per share, comfortably beating Wall Street's $2.97 estimate. Net income jumped from $1.7 billion a year earlier, despite a decline in production.The company's average realized price climbed 32% year over year to $61.40 per barrel of oil equivalent. Brent averaged $89.27 during the quarter, more than 31% above year-earlier levels.Production slipped to 2.3 million barrels of oil equivalent per day from 2.4 million a year earlier. Although output from Qatar improved during the quarter, it remained below pre-war levels.ConocoPhillips increased its quarterly dividend from 84 cents to 93 cents per share. The company returned $3.4 billion to shareholders during the quarter, including $2.4 billion in share repurchases, while generating $7.2 billion in operating cash flow.The results follow similarly outsized earnings from other oil majors. ExxonMobil reported $15.4 billion in third-quarter profit, more than double the $7.5 billion earned a year earlier. Chevron's earnings nearly tripled to $9.9 billion from $3.5 billion, while BP reported $4.7 billion in profit attributable to shareholders, compared with $1.2 billion last year.For ConocoPhillips, the focus remains on increasing cash flow rather than dramatically accelerating production. The company expects fourth-quarter output of 2.32 million to 2.36 million barrels of oil equivalent per day and reaffirmed its target of increasing annual free cash flow by $7 billion by 2029 compared with 2025.Its Willow project in Alaska remains on schedule for first oil in early 2029, with module fabrication more than 75% complete.CEO Andy O'Brien said additional efficiencies in U.S. shale and production from Willow should support further cash flow growth beyond 2029.ConocoPhillips is also evaluating a potential sale of its Norwegian operations and the Teesside asset in the UK, although no decision has been made.By Julianne Geiger for Oilprice.comMore Top Reads From Oilprice.comADNOC Gas to Supply LNG to TotalEnergies Under Five-Year DealIran Reports More Tanker Fires in Strait of HormuzIndia to Require State Utilities to Add Energy Storage Capacity