Strong Execution and Production Guidance Increase
ConocoPhillips exceeded the top end of its production guidance, producing 2,399,000 barrels of oil equivalent per day. The company raised its full-year production guidance to 2,375,000 barrels of oil equivalent per day, up 15,000 from the previous guidance midpoint.
Dividend Increase and Capital Returns
The base dividend was raised by 8%, aligning with the goal of delivering top quartile dividend growth relative to the S&P 500. Year-to-date, the company has returned approximately 45% of its cash flow from operations to shareholders.
Reduction in LNG Project Capital
Total LNG project capital was reduced by $600 million. The projects in Qatar and Port Arthur are on track, with capital spending about 80% complete and the first startup expected next year.
Operational Cost Reduction
Operating cost guidance was reduced to $10.6 billion, down from the prior guidance midpoint of $10.8 billion, due to improved operational efficiencies and cost management.