ConocoPhillips Increases Planned 2022 Return Of Capital To $8 Bln; Issues Guidance

(RTTNews) - ConocoPhillips (COP) announced a $1 billion increase in expected 2022 return of capital to shareholders to a new total of $8 billion, an increase of more than 30% over 2021. The company declared both an ordinary dividend of 46 cents per share and a second-quarter variable return of cash (VROC) payment of 30 cents per share, a 50% increase over the first-quarter VROC. Combined, the targeted 2022 ordinary dividend and VROC represent a more than 50% increase in cash return to shareholders compared to 2021.

Fourth-quarter adjusted profit was $3.0 billion, or $2.27 per share, compared to an adjusted loss of $0.2 billion, or $0.19 per share, prior year. On average, 20 analysts polled by Thomson Reuters expected the company to report profit per share of $2.18, for the quarter. Analysts' estimates typically exclude special items.

Net income was $2.6 billion, or $1.98 per share, compared to a loss of $0.8 billion, or $0.72 per share, last year.

Total revenues and other income increased to $15.96 billion from $6.05 billion, last year. Analysts on average had estimated $13.79 billion in revenue.

Production excluding Libya for the fourth quarter of 2021 was 1,567 thousand barrels of oil equivalent per day (MBOED), an increase of 423 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions as well as impacts from converting previously acquired Concho two-stream contracted volumes to a three-stream basis, fourth-quarter production increased by 70 MBOED, or 5% from the same period a year ago.

The company's 2022 operating plan capital budget is $7.2 billion. Production guidance is 1.8 million barrels of oil equivalent per day, including Libya but excluding impacts from the pending Indonesia disposition and acquisition of additional APLNG shareholding interest.

First-quarter 2022 production is expected to be 1.75 MMBOED to 1.79 MMBOED, essentially flat to fourth-quarter 2021 on a pro forma basis.