ConocoPhillips Hits High Note in Q4 2024 Earnings Call
ConocoPhillips has delivered a strong performance in its fourth quarter 2024 earnings call, exceeding expectations and showcasing the company's operational execution and growth strategy. The oil major reported 4% production growth year-over-year, which was above the high end of its full-year guidance range.
"We executed well operationally and on a stand-alone basis," said Ryan Lance, Chairman and CEO of ConocoPhillips. "2024 was certainly another strong year for us."
The company's performance across its entire portfolio was impressive, with 5% growth in the Lower 48 and 3% growth in Alaska and international on the same basis. Additionally, it delivered a preliminary organic reserve replacement ratio of 123%, beating its own internal target.
One notable highlight from the quarter is the acquisition of Marathon Oil, which ConocoPhillips closed in late November. The deal added high-quality, low-cost-of-supply inventory to the company's portfolio and has enabled it to deliver more than $1 billion of run-rate synergies by the end of 2025.
ConocoPhillips also made significant progress on its global LNG strategy through additional regasification and sales agreements into Europe and Asia. Furthermore, it is making solid progress on its planned $2 billion asset sales program, with agreements in place to sell non-core Lower 48 assets for approximately $600 million.
The company's commitment to returning value to shareholders remains unchanged, having returned a substantial $9.1 billion of capital to investors in the trailing 12-month period. In fact, it plans to return an additional $10 billion back to shareholders this year, assuming current commodity prices.
Looking ahead to 2025, ConocoPhillips is confident in its plan to deliver low single-digit production growth for $12.9 billion of CapEx. The company also expects to grow production in Alaska and Canada while investing in differentiated high-return, longer-cycle projects that will drive incremental CFO and sustaining free cash flow.
"We remain confident that we will deliver more than $1 billion of run-rate synergies by the end of 2025," said Ryan Lance. This confidence is based on expected material synergy capture associated with the acquisition of Marathon and significant drilling and completion efficiency gains in the Lower 48."
Overall, ConocoPhillips' performance in its fourth quarter 2024 earnings call has been impressive, demonstrating the company's operational execution and growth strategy. As it looks to 2025, ConocoPhillips remains committed to delivering value to shareholders while investing in high-return projects that will drive long-term growth."
As a result of this performance and its forward-looking plans, ConocoPhillips is poised for continued success in the energy sector.
