ConocoPhillips Earnings: Shareholder Payouts to Fall in 2024, but Investment Case Intact

ConocoPhillips reported adjusted earnings decreased to $2.9 billion in the fourth quarter, compared with $3.4 billion a year earlier, largely on lower prices but offset by higher volumes. Following its three-tier capital return framework, it paid out $1.4 billion in dividends and variable return of cash and repurchased $1.1 billion in shares. The company also announced it plans to return $9 billion to shareholders in 2024, implying a 6.7% yield. This marks a decrease from the $11 billion distributed in 2023 but is a function of the expectation for lower prices and the company’s variable distribution framework.