ConocoPhillips' stock gains after a profit beat, as production rose to a record

By Tomi Kilgore

Revenue missed, and the outlook for current-quarter production was below expectations

Shares of ConocoPhillips rallied early Thursday after the oil giant reported second-quarter profit that beat expectations and said it reached record production.

The company (COP) said its plan to buy Marathon Oil Corp. (MRO), in a $17.5 billion deal announced in May, is "progressing," and is expected to close late in the fourth quarter.

ConocoPhillips' stock rose 0.8% in premarket trading. It had gained 1.9% over the past two days, after closing Monday at a six-month low.

Net earnings rose to $2.33 billion, or $1.98 a share, from $2.23 billion, or $1.84 a share, in the same period a year ago. That beat the FactSet consensus for earnings per share of $1.96.

Total revenue of $14.14 billion was up 9.7% from a year ago, but down 2.3% from the first quarter and below the FactSet consensus of $14.96 billion.

Production increased 7.8% to 1.945 million barrels of oil equivalent per day (MMBOED), including Lower 48 (in the U.S.) production of 1.105 MMBOED. That beat the FactSet consensus of 1.930 MMBOED.

For the third quarter, the company expects production to be 1.87 million barrels of oil equivalent per day to 1.91 (MMBOED), compared with the FactSet consensus of 1.93 MMBOED.

For 2024, the company lowered its guidance ranges for adjusted corporate segment losses to $800 million to $900 million from $1 billion to $1.1 billion, and for depreciation, depletion and amortization to $9.3 billion to $9.4 billion from $9.4 billion to $9.6 billion.

Meanwhile, 2024 adjusted operating cost guidance was raised to $9.2 billion to $9.3 billion from $8.9 billion to $9.1 billion, due primarily to higher transportation and processing costs and inflationary pressures.

The stock has lost 4.2% year to date through Wednesday, while the Energy Select Sector SPDR ETF (XLE) has rallied 11.2% and the S&P 500 has advanced 15.8%.

-Tomi Kilgore

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08-01-24 0839ET

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