Rising Oil Price Wave Lifts ConocoPhillips’ Boat in Q3; Remains Attractive Play on Higher Oil Prices

ConocoPhillips benefited from higher oil and gas prices and greater volumes during the third quarter to report adjusted earnings of $2.4 billion compared with a $0.3 billion loss a year earlier. Production excluding Libya increased to 1,507 mboed compared with 1,066 mboed a year earlier largely thanks to the Concho acquisition. Adjusting for acquisitions, dispositions, and 2020 curtailments, third-quarter production increased 2%. Operating cash flow excluding working capital changes totaled $4.1 billion, sufficient to fund $1.3 billion in capital expenditures, $1.2 billion in repurchases, and $0.6 billion in dividends. During the quarter, Conoco increased the dividend 7%. Year to date it has returned $4 billion to shareholders in dividends and repurchases and plans to return $6 billion for full-year 2021.