Three oil stocks are falling today. None of them are terribly expensive, and one looks cheap enough to buy.Tuesday is looking like a bad day to be invested in oil stocks, as downbeat news in the oil sector takes a toll on shares of oil majors ExxonMobil (XOM -2.68%), ConocoPhillips (COP -3.35%), and BP (BP -3.30%).OilPrice.com is reporting on a "plunge" below $75 a barrel in Brent crude prices (currently $74 and change). WTI crude -- more popular in the U.S. -- is suffering a similar fall, down 3.8% at abou ...

ConocoPhillips (COP) received shareholder approval to move forward with its planned merger with Marathon Oil Corporation (MRO) .The all-stock transaction, valued at $22.5 billion and including $5.4 billion in net debt, was initially announced in May 2024. The merger is expected to close by the end of the fourth quarter of 2024.Under the terms of the deal, Marathon Oil shareholders will receive 0.2550 shares of ConocoPhillips common stock for each share of Marathon Oil common stock.ConocoPhillips emphasized ...

ConocoPhillips (COP) , the U.S. oil giant, has granted a global contract to Raptor Data, an Aberdeen-based technology company, to manufacture and deploy a fleet of tools for well intervention and plug and abandonment (P&A), starting with operations in Norway.Raptor Data will supply its flagship technology, the Pathfinder system, as part of the contract. Touted as the first plug-and-play in-well verification system, Pathfinder is designed to enhance the verification of bismuth caps — a chemical element incre ...

Vertigo3d Energy companies have long been a staple for dividend investors. Unlike other sectors, this industry doesn't have to continually invent the next best thing to stay atop the field. This industry is known for generous capital returns to shareholders through dividends and share buybacks, and this is reflected by its strong total returns. As shown below, the SPDR Energy Select ETF (XLE) has beaten the S&P 500 (SPY) in total return over the past 5 years with a 108% total return compared to 96% from ...

ConocoPhillips (COP) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Over the past month, shares of this energy company have returned -5%, compared to the Zacks S&P 500 composite's -6.5% change. During this period, the Zacks Oil and Gas - Integrated - United States industry, which ConocoPhillips falls in, has lost 6.4%. The key question now is: What could be the st ...

Core Viewpoint - ConocoPhillips has successfully repositioned its oil and gas portfolio, focusing on low-cost and high-return operations, resulting in significant cash generation and shareholder returns [1][8] Production and Financial Performance - In Q2, ConocoPhillips produced over 1.9 million barrels of oil equivalent per day, a 140,000 BOE/d increase year-over-year, representing a 4% rise after adjustments [2] - The average realized price was $56.56 per BOE, also a 4% increase from the previous year, contributing to a rise in adjusted earnings from $2.2 billion ($1.84 per share) to $2.3 billion ($1.98 per share) [2] Cash Flow and Shareholder Returns - Cash provided by operating activities reached $4.9 billion, covering $3 billion in capital expenses, with the excess returned to shareholders through $900 million in dividends and $1 billion in share repurchases [3] - Year-to-date cash returns total $4.2 billion, comprising $2.3 billion in share repurchases and $1.8 billion in dividends and variable return of cash payments [3] Future Cash Returns and Dividend Growth - ConocoPhillips plans to return at least $9 billion to shareholders in 2023, with a 34% dividend increase planned for Q4, making the current variable return of cash payment permanent [4] - The company anticipates further cash returns in 2025 and beyond, driven by the acquisition of Marathon Oil for $22.5 billion, which is expected to be immediately accretive to earnings and cash flow [5][6] Strategic Growth and Cost Savings - The acquisition of Marathon Oil is projected to yield at least $500 million in annual cost savings in the first year, enhancing ConocoPhillips' low-cost U.S. resource base with over 2 billion barrels of resources [5] - The combined company is expected to generate significant free cash flow, allowing for an increase in share repurchase rates to over $7 billion annually post-acquisition [6] Dividend Growth Strategy - ConocoPhillips aims to be in the top 25% of dividend growers in the S&P 500, with a planned 34% increase in dividends continuing its trend of above-average growth since 2016 [6]

Acquisition and Synergies - ConocoPhillips announced the acquisition of Marathon Oil Corporation in an all-stock transaction with an enterprise value of approximately $22.5 billion, including $5.4 billion of Marathon Oil's debt[118] - The company expects annualized cost and capital expenditure synergies of at least $500 million within the first full year following the close of the Marathon Oil acquisition[119] - ConocoPhillips plans to repurchase over $7 billion of shares in the first full year and over $20 billion in total over the first three years following the Marathon Oil acquisition[119] Production and Financial Performance - Second-quarter 2024 production increased by 140 MBOED to 1,945 MBOED, with a 4% increase (76 MBOED) after adjusting for acquisitions and dispositions[124] - The company generated $4.9 billion in cash from operating activities in Q2 2024 and returned $1.9 billion to shareholders through share repurchases and dividends[125] - Full-year 2024 production guidance is updated to 1.93-1.94 MMBOED, reflecting strong Q2 results[131] - Full-year 2024 capital expenditures guidance is updated to approximately $11.5 billion, up from the prior range of $11.0-11.5 billion[131] - Total production in Q2 2024 was 1,945 MBOED, an increase of 140 MBOED or 8% compared to the same period in 2023[135] - Six-month production in 2024 was 1,923 MBOED, an increase of 125 MBOED or 7% compared to the same period in 2023[135] - Sales and other operating revenues increased by $1,269 million in Q2 2024 and $306 million in the six-month period of 2024, driven by higher volumes and realized prices[138] - Production and operating expenses increased by $278 million in Q2 2024 and $514 million in the six-month period of 2024, primarily due to higher lease operating expenses and transportation costs[139] - DD&A expenses increased by $324 million in Q2 2024 and $593 million in the six-month period of 2024, mainly due to higher rates and volumes in the Lower 48 and Alaska segments[140] - Net income for the Lower 48 segment was $1,259 million in Q2 2024 and $2,640 million in the six-month period of 2024, driven by higher realized prices and volumes[149] - Alaska segment net income was $360 million in Q2 2024 and $706 million in the six-month period of 2024, with higher sales revenues offset by increased production and operating expenses[145] - Average production in the Lower 48 increased by 42 MBOED in Q2 2024 and 26 MBOED in the six-month period of 2024, primarily due to new wells online[151] - Purchased commodities increased by $242 million in Q2 2024 but decreased by $562 million in the six-month period of 2024, driven by fluctuating natural gas and power prices[139] - Equity in earnings of affiliates decreased by $87 million in the six-month period of 2024 due to lower LNG prices[138] - Canada segment reported net income of $261 million and $441 million for the three- and six-month periods of 2024, respectively, compared to $32 million and $38 million in the same periods of 2023[153] - Canada segment's total production increased by 91 MBOED and 86 MBOED for the three- and six-month periods of 2024, driven by increased working interest in Surmont and new wells in Montney and Surmont[155] - Europe, Middle East and North Africa segment reported net income of $251 million and $555 million for the three- and six-month periods of 2024, respectively, compared to $264 million and $629 million in the same periods of 2023[158] - Asia Pacific segment reported net income of $444 million and $956 million for the three- and six-month periods of 2024, respectively, compared to $387 million and $909 million in the same periods of 2023[163] - Asia Pacific segment's average crude oil sales price increased to $86.47 per barrel in Q2 2024 from $78.64 per barrel in Q2 2023[162] - Corporate G&A expenses decreased to $78 million and $183 million for the three- and six-month periods of 2024, respectively, due to mark-to-market adjustments in compensation programs[167] - Technology expenses increased to $44 million and $68 million for the three- and six-month periods of 2024, respectively, due to higher costs in low-carbon and new technologies[167] - Other International segment reported a net income of $3 million and $2 million for the three- and six-month periods of 2024, respectively, compared to a net loss of $4 million and $3 million in the same periods of 2023[165] - Net interest expense increased to $89 million and $182 million for the three- and six-month periods of 2024, respectively, compared to $86 million and $176 million in the same periods of 2023[166] - Other income (expense) decreased to a loss of $38 million and a gain of $13 million for the three- and six-month periods of 2024, respectively, due to foreign currency exchange impacts and absence of prior year tax adjustments[168] - Total liquidity at June 30, 2024 was $11.5 billion, including $4.3 billion in cash and cash equivalents, $1.7 billion in short-term investments, and $5.5 billion in available borrowing capacity[171] - Cash provided by operating activities increased to $9.9 billion in the first six months of 2024, up from $9.3 billion in the same period of 2023, driven by higher production and crude prices[172] - Capital expenditures and investments totaled $5.9 billion in the first six months of 2024, with 2024 full-year guidance of approximately $11.5 billion[175][184] - The company repurchased 20.0 million shares for $2.3 billion in the first six months of 2024, bringing total repurchases under the current program to 403.4 million shares and $31.2 billion[182] - Total debt decreased to $18.4 billion at June 30, 2024 from $18.9 billion at December 31, 2023, with debt-to-capital ratio improving to 27% from 28%[170][177] - The company paid ordinary dividends of $1.16 per share and VROC payments of $0.40 per share in the first six months of 2024, with plans to increase the quarterly ordinary dividend by 34% starting in Q4 2024[181] - Investments in LNG projects totaled $0.5 billion in the first six months of 2024, including projects in Port Arthur, QatarEnergy LNG NFE4 and NFS3[175] - The company has a $5.5 billion revolving credit facility expiring in February 2027, with full borrowing capacity available as of June 30, 2024[177] - Revenues and other income for the Obligor Group totaled $18.2 billion in the first six months of 2024, with net income of $4.9 billion[187] - The company maintains strong credit ratings, with Fitch at "A", S&P at "A-", and Moody's at "A2", all with stable outlooks[178] Environmental and Climate Strategy - The company has identified 15 sites in the U.S. as potentially responsible parties under CERCLA and comparable state laws, with a total environmental accrual of $184 million on the consolidated balance sheet as of June 30, 2024[193] - The company expects to incur substantial environmental remediation expenditures within the next 30 years, with no material adverse effect anticipated on operations or financial position from current environmental compliance[194] - The company has adopted a Paris-aligned climate risk framework aiming for net-zero operational (Scope 1 and 2) emissions by 2050, with a focus on managing climate-related risks and optimizing opportunities[196] - The company's Climate Risk Strategy includes a Plan for the Net-Zero Energy Transition, emphasizing strategic flexibility, emissions reduction, and contributions to an orderly energy transition[197] - The company has accelerated its GHG intensity reduction target to 50-60% by 2030 from a 2016 baseline and implemented a near-zero methane emissions intensity target of 1.5 kg CO2e per BOE by 2030[199] - The company does not include a Scope 3 (end-use) emissions target in its Plan, advocating instead for a well-designed, economy-wide carbon price and regulatory action on methane[198] - The company's environmental and climate-related risks are detailed in its 2023 Annual Report on Form 10-K, including potential impacts from future laws and regulations[200] Market and Price Trends - Brent crude oil prices averaged $84.94 per barrel in Q2 2024, an 8% increase from $78.39 per barrel in Q2 2023[127] - Henry Hub natural gas prices averaged $1.89 per MMBTU in Q2 2024, a 10% decrease from $2.09 per MMBTU in Q2 2023[128] LNG Agreements - The company signed long-term LNG agreements for 0.75 MTPA regasification capacity in Belgium and 0.5 MTPA sales into Asia, both commencing in 2027[123] Risks and Uncertainties - The company's forward-looking statements include expectations for production growth, capital expenditures, and dividends, with caution about potential risks and uncertainties[201] - The company faces risks from fluctuations in oil and gas prices, global demand and supply changes, and potential impacts from military conflicts and public health crises[202] - The company's ability to achieve its low-carbon strategy and emissions reduction targets may be impacted by technological, regulatory, and market uncertainties[202]

Key TakeawaysConocoPhillips on Thursday reported record levels of production for the second quarter.However, the company's revenue and net income fell short of analysts' estimates and its shares fell.ConocoPhillips also said that its $22.5 billion acquisition of Marathon Oil is on track to close by the end of the fourth quarter despite a recent request for more information on the deal from the FTC. ConocoPhillips (COP) on Thursday reported second-quarter results below analysts' expectations and narrowed its ...

ConocoPhillips (COP) reported second-quarter 2024 adjusted earnings per share of $1.98, which missed the Zacks Consensus Estimate of $2.06. The bottom line, however, increased from the prior-year quarter’s level of $1.84.One of the world’s leading independent oil and gas producers, headquartered in Houston, TX, ConocoPhillips’ quarterly revenues of $14.1 billion increased from $12.9 billion in the year-ago period. However, the top line missed the Zacks Consensus Estimate of $15.1 billion.The lower-than-expe ...

About this content About William Farrington William kickstarted his career as a researcher and reporter for a global legal publication, covering everything from public law to M&A. Before moving to Proactive Investors, he worked as a reporter for a major fintech company with a focus on cryptocurrency and blockchain technology. Harking from Queensland, Australia, William obtained first-class honours in journalism and media from Birkbeck University before going on to complete an MA in creative and critical ...