ConocoPhillips (NYSE: COP) on Thursday raised its quarterly dividend by 8% as it reported better-than-expected earnings for the third quarter.
ConocoPhillips, the biggest U.S. independent oil and gas producer, reported adjusted earnings of $2 billion for the third quarter, or $1.61 per share. The EPS easily beat the analyst consensus estimate of $1.41 earnings per share in The Wall Street Journal.
Higher oil and gas production and reduced costs helped ConocoPhillips partly offset the lower oil prices and price realizations.
Total company production stood at 2.399 million barrels of oil equivalent per day (boed) and Lower 48 production averaged 1.528 million boed. Adjusting for closed acquisitions and dispositions, third-quarter oil and gas production increased by 4% from the same period a year ago.
Compared to the third quarter of 2024, lower oil prices weighed on this year’s results.
ConocoPhillips’ total average realized price was $46.44 per barrel of oil equivalent (boe), down by 14% compared to the $54.18 per boe realized price in the third quarter of 2024.
Yet, the decline in prices was “partially offset by the benefits of the Marathon Oil acquisition and higher underlying production volumes,” ConocoPhillips said.
ConocoPhillips increased its base dividend by 8%, “consistent with our goal to provide top quartile dividend growth in the S&P 500,” chairman and chief executive officer, Ryan Lance, said in a statement.
The producer also offered a first glimpse into its guidance for 2026 and it is consistent with the disciplined capital allocation across the U.S. shale patch amid uncertainties about oil prices, trade policies, and costs.
“Looking to 2026, we expect lower capital and operating costs with flat to modest production growth,” Lance added.
Last week, the two U.S. supermajors, ExxonMobil and Chevron, both reported higher-than-forecast earnings for the third quarter, on the back of record-high oil and gas production at their respective key assets.
By Michael Kern for Oilprice.com
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