ConocoPhillips(US:COP)2021-05-05 16:00Acquisition and Expansion - ConocoPhillips completed the acquisition of Concho Resources Inc. for a total consideration of $13.1 billion, enhancing its presence in the Permian Basin[132][133]. - The Concho acquisition completed on January 15, 2021, significantly enhanced the company's presence in the Permian Basin[166]. - The company completed the acquisition of Concho on January 15, 2021, assuming publicly traded debt recorded at fair value of $4.7 billion[199]. Financial Performance - The company reported net cash provided by operating activities of $2.1 billion in Q1 2021, with 46% returned to shareholders through dividends of $0.6 billion and share repurchases of $0.4 billion[138][148]. - The company recognized a net income attributable to ConocoPhillips of $2,721 million in Q1 2021, significantly improved from the previous year, driven by higher sales volumes and realized commodity prices[152]. - In Q1 2021, the company reported revenues of $6.607 billion and net income of $982 million[207]. - Sales and other operating revenues increased by 60% due to higher sales volumes and commodity price realizations, primarily from the Concho acquisition[154]. Production and Operations - Total production for Q1 2021 was 1,527 MBOED, including 405 MBOED from the Permian Basin, reflecting an 18% increase compared to Q1 2020[138][142]. - Average net production increased by 238 MBOED or 18% in Q1 2021, driven by higher volumes in the Lower 48 and new wells coming online[159]. - Total production, excluding Libya, increased by 210 MBOED or 16% in Q1 2021, with adjusted production decreasing by 59 MBOED or 4% when accounting for acquisitions and dispositions[160]. - The company expects Q2 2021 production to be between 1.50 to 1.54 MMBOED, excluding Libya, due to planned seasonal turnarounds[149]. Capital Expenditures and Debt Management - Capital expenditures for 2021 are planned at $5.5 billion, with $5.1 billion allocated to sustain current production and $0.4 billion for major projects[149]. - Capital expenditures in Q1 2021 were $1.2 billion, with a full-year plan of $5.5 billion compared to $4.7 billion in 2020[193]. - The company aims to reduce gross debt by $5 billion over the next five years to enhance its capital structure[140][148]. - Total debt increased to $20,027 million as of March 31, 2021, from $15,369 million at the end of 2020[187]. Environmental and Climate Initiatives - The company aims to reduce gross operated (Scope 1 and 2) emissions intensity by 35 to 45 percent from 2016 levels by 2030, with a long-term ambition of achieving net-zero operated emissions by 2050[227]. - The company has developed a Climate Change Action Plan addressing GHG-related legislation, emissions management, physical climate impacts, and climate-related disclosure[225]. - The company is a Founding Member of the Climate Leadership Council, focusing on carbon pricing and climate-related risk management[227]. - The company has joined the World Bank Flaring Initiative, aiming for zero routine flaring of gas by 2030[227]. Legal and Regulatory Matters - The company is involved in 22 lawsuits related to contamination and erosion of the Louisiana coastline, with claims that are unprecedented in scope and damages[224]. - The company has a total of 43 lawsuits filed against it under Louisiana's State and Local Coastal Resources Management Act[224]. - The company believes ongoing climate change litigation against it is factually and legally meritless and will vigorously defend against these lawsuits[223]. Shareholder Returns - The company announced a quarterly dividend of $0.43 per share, paid on March 1, 2021, and reaffirmed its commitment to a sustainable dividend policy[210]. - The company has a share repurchase program with an authorization to repurchase $25 billion of common stock, resuming at an annualized level of $1.5 billion in February 2021[211].