CONOCOPHILLIPS
For the period ended Sep 30, 2024. Filed Oct 31, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 31, 2024
COP$136.27+0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-01.
0001163165-24-000037
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-31.
0001163165-24-000052
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 248 previous paragraphs and 253 current paragraphs.
151 unchanged; 68 reworded; 32 added; 26 removed; 3 previous and 2 current paragraphs rearranged.
Tables are not compared: 58 previous and 60 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (32)
Current report
We continue to optimize our portfolio geared towards our returns-focused value proposition. In October, we signed an agreement to acquire additional working interests in both the Kuparuk River Unit and the Prudhoe Bay Unit in Alaska. This transaction is expected to close in the fourth quarter of 2024. See Note 3.
Current report
Our realized bitumen price averaged $47.32 per barrel in the third quarter of 2024, a decrease of 18 percent compared with $57.85 per barrel in the third quarter of 2023. The decrease in the third quarter of 2024 was driven by widening WCS differentials in Canada, lower heavy oil refinery demand on the U.S. Gulf Coast and impacts associated with lower sales volumes from Surmont due to a planned turnaround at one of our central processing facilities.
Current report
•Raised ordinary dividend by 34 percent to $0.78 per share and increased existing share repurchase authorization by up to $20 billion;
Current report
•Delivered total company production of 1,917 MBOED;
Current report
•Achieved record lower 48 production of 1,147 MBOED, including 781 MBOED from the Permian, 246 MBOED from the Eagle Ford and 107 MBOED from the Bakken;
Current report
•Successfully completed planned turnarounds, primarily in Canada and the Lower 48;
Current report
•Exercised preferential rights and signed an agreement to acquire additional working interests in the Kuparuk River and Prudhoe Bay units in Alaska for approximately $300 million, with expected close by year-end, subject to customary closing conditions;
Current report
All other guidance items remain unchanged.
Current report
Guidance excludes any impact from previously announced transactions.
Current report
•Normal field decline.
Current report
•Planned turnaround activity across our global operations.
Current report
Gain (loss) on dispositions decreased $110 million in the third quarter of 2024 and $114 million in the nine-month period of 2024 primarily due to the absence of the divestiture of an equity investment in our Lower 48 segment.
Current report
Alaska reported earnings of $267 million and $973 million in the three- and nine-month periods of 2024, respectively, compared with earnings of $448 million and $1,236 million in the three- and nine-month periods of 2023, respectively.
Current report
Average production decreased 3 MBOED and 4 MBOED in the three- and nine-month periods of 2024, respectively. Decreases to production were primarily due to normal field decline, partially offset by new wells online.
Current report
Planned Acquisition
Current report
In October, we signed an agreement to acquire additional working interests in both the Kuparuk River Unit and the Prudhoe Bay Unit. This transaction is expected to close in the fourth quarter of 2024. See Note 3.
Current report
Earnings in the third quarter of 2024 included lower revenues resulting from lower overall realized prices of $494 million, partially offset by higher volumes of $190 million. Decreases to earnings in the third quarter of 2024 included higher DD&A expenses of $118 million, driven by higher volumes of $64 million and higher rates of $52 million, the absence of a gain from the divestiture of an equity investment of $100 million and higher production and operating expenses of $40 million driven by increased transportation related costs of $30 million.
Current report
Earnings in the nine-month period of 2024 included lower revenues resulting from lower overall realized prices of $433 million, partially offset by higher volumes of $287 million. Decreases to earnings in the nine-month period of 2024 included higher DD&A expenses of $323 million, driven by higher volumes of $166 million and higher rates of $160 million, higher production and operating expenses of $235 million, driven by increased transportation related costs of $93 million and increased lease operating expenses of $74 million, and the absence of a gain from the divestiture of an equity investment of $100 million.
Current report
Canada reported earnings of $25 million and $466 million in the three- and nine-month periods of 2024, respectively, compared with earnings of $186 million and $224 million in the three- and nine-month periods of 2023, respectively.
Current report
Production increases were partly offset by planned turnaround activity at a Surmont central processing facility and normal field decline.
Current report
Earnings in the third quarter of 2024 included higher revenues resulting from higher volumes of $31 million, partially offset by lower realized prices of $11 million primarily impacted by lower crude prices.
Current report
Earnings in the nine-month period of 2024 included lower revenues resulting from lower realized prices of $72 million primarily impacted by lower natural gas prices, partially offset by higher volumes of $54 million. Decreases to earnings included lower foreign exchange gains of approximately $37 million and higher DD&A expenses of $34 million.
Current report
Production increases were partly offset by normal field decline and curtailed production in Libya due to the force majeure at Es Sider terminal. Force majeure was lifted in early October.
Current report
Earnings in the third quarter of 2024 included lower revenues resulting from lower realized prices of $41 million and lower volumes of $38 million. Decreases to earnings included the absence of a $52 million tax benefit associated with a deepwater tax incentive. The decreases to earnings were partially offset by higher earnings from equity affiliates of $38 million and foreign exchange gains of $30 million. See Note 19.
Current report
Earnings in the nine-month period of 2024 included a $76 million tax benefit associated with deepwater investment tax incentive, higher foreign exchange gains of approximately $38 million and lower DD&A expenses of $21 million. The increases to earnings were partially offset by the absence of a $52 million third quarter 2023 tax benefit associated with a deepwater investment tax incentive and lower earnings from equity affiliates of $50 million. See Note 19.
Current report
In the third quarter of 2024, we signed a purchase and sale agreement for approximately $300 million, subject to customary adjustments, to acquire additional working interests in both the Kuparuk River Unit and the Prudhoe Bay Unit in Alaska. This transaction is expected to close in the fourth quarter of 2024. See Note 3.
Current report
In October 2024, we declared an increase to our quarterly ordinary dividend from $0.58 per share to $0.78 per share, representing a 34 percent increase, effectively rolling the amount of the prior quarter VROC into the ordinary dividend. VROC remains a discretionary option in elevated price environments. The dividend is payable December 2, 2024, to shareholders of record on November 11, 2024.
Current report
◦Track the energy transition through a comprehensive scenario planning process to calibrate and understand alternative energy transition pathways and test the resilience of our corporate strategy to climate risk.
Current report
◦Working with our suppliers and commercial partners to reduce emissions along the value chain.
Current report
◦Building an attractive LNG portfolio as an important component of responsibly meeting energy transition demand due to its lower GHG emissions than coal used for electricity generation.
Current report
•Continued methane emissions reductions activities in support of our near-zero methane emissions intensity (1.5 kilogram carbon dioxide equivalent per BOE) and introduced data quality improvements.
Current report
•Remained on schedule to meet a target of zero routine flaring by the end of 2025, five years sooner than the World Bank Initiative's goal of 2030.
Removed paragraphs (26)
Previous report
Operationally, we remain focused on safely executing the business while also progressing key strategic initiatives. At Willow, we successfully completed our first major winter construction season. Internationally, we continue to see production growth through project ramp up and new wells online in projects that reached first production at the end of 2023. In Norway, we reached first production at Eldfisk North ahead of schedule, and in China, we celebrated the one thousandth Penglai cargo lift.
Previous report
Our realized bitumen price averaged $54.59 per barrel in the second quarter of 2024, an increase of 33 percent compared with $41.01 per barrel in the second quarter of 2023. The increase in the second quarter of 2024 was driven by strengthening WTI, narrowing WCS differentials with new heavy oil egress via the Trans Mountain pipeline expansion and an improving sales mix with a lower allocation to rail.
Previous report
Significant items during the second quarter of 2024 and recent announcements included the following:
Previous report
•Declared ordinary dividend of $0.58 per share and VROC of $0.20 per share payable in the third quarter;
Previous report
•Delivered total company and Lower 48 production of 1,945 MBOED and 1,105 MBOED, respectively;
Previous report
•Reached first production ahead of schedule at Eldfisk North in Norway;
Previous report
•Achieved significant milestones at Willow with arrival of Operations Center modules in Alaska and commencement of the Central Facility fabrication earlier than planned;
Previous report
•Advanced global LNG strategy by signing a long-term regasification agreement at Zeebrugge LNG terminal in Belgium and a long-term LNG sales agreement in Asia, both commencing in 2027;
Previous report
Full-year capital expenditures guidance is updated to approximately $11.5 billion versus prior range of $11.0 to $11.5 billion, due to strong progress on Willow and increased Lower 48 partner-operated activity.
Previous report
Full-year DD&A guidance is lowered to $9.3 to $9.4 billion versus prior guidance of $9.4 to $9.6 billion.
Previous report
Equity in earnings of affiliates for the six-month period of 2024 decreased $87 million due to lower earnings primarily driven by lower LNG prices.
Previous report
Alaska reported earnings of $360 million and $706 million in the three- and six-month periods of 2024, respectively, compared with earnings of $372 million and $788 million in the three- and six-month periods of 2023, respectively.
Previous report
Earnings in the second quarter of 2024 included higher revenues resulting from higher overall realized prices of $184 million, inclusive of a $116 million impact from lower realized gas prices, and higher volumes of $76 million. Earnings decreases in the second quarter of 2024 included higher production and operating expenses of $100 million, driven by increased lease operating expenses of $51 million and increased transportation related costs of $32 million, as well as higher DD&A expenses of $116 million, driven by higher rates of $85 million and higher production volumes of $33 million.
Previous report
Earnings in the six-month period of 2024 included lower revenues resulting from lower commercial performance and timing, partially offset by higher volumes of $93 million and higher overall realized prices of $63 million, inclusive of a $253 million impact from lower realized gas prices. Earnings decreases in the six-month period of 2024 included higher production and operating expenses of $195 million, driven by increased lease operating expenses of $87 million and increased transportation related costs of $65 million, higher DD&A expenses of $205 million, driven by higher rates of $170 million and higher production volumes of $25 million.
Previous report
Canada reported earnings of $261 million and $441 million in the three- and six-month periods of 2024, respectively, compared with earnings of $32 million and $38 million in the three- and six-month periods of 2023, respectively.
Previous report
Earnings in the second quarter of 2024 included lower sales revenues of $20 million. Earnings decreases in the second quarter of 2024 included lower foreign exchange gains of approximately $21 million related to NOK to USD exchange rate fluctuations.
Previous report
Earnings in the six-month period of 2024 included lower sales revenues resulting from lower realized prices of $61 million partially offset by higher volumes of $26 million. Earnings decreases in the six-month period of 2024 included lower foreign exchange gains of approximately $40 million related to NOK to USD exchange rate fluctuations.
Previous report
Eldfisk North First Production in Norway
Previous report
In May 2024, we reached first production ahead of schedule at Eldfisk North in Norway.
Previous report
Earnings in the second quarter of 2024 included higher sales revenues resulting from higher realized prices of $34 million and higher volumes of $20 million.
Previous report
Earnings in the six-month period of 2024 included higher sales revenues resulting from higher realized prices of $43 million. Earnings increases in the six-month period of 2024 included a $76 million tax benefit associated with a deepwater investment tax incentive for Malaysia Blocks J & G. Offsetting these increases were lower earnings from equity affiliates of $87 million, primarily due to lower LNG sales prices. See Note 19.
Previous report
•Addressing Scope 3 emissions
Previous report
◦Working with our suppliers for alignment on GHG emissions reductions.
Previous report
◦Building an attractive LNG portfolio.
Previous report
•Continued to refine our Paris-aligned climate risk strategy.
Previous report
•Implemented our new near-zero 2030 methane emissions intensity target of approximately 1.5 kilogram carbon dioxide equivalent per BOE or of 0.15 percent of gas produced.
Reworded paragraphs (68)
Previous wording
ConocoPhillips is one of the world’s leading E&P companies based on production and reserves, with operations and activities in 13 countries. Our diverse, low cost of supply portfolio includes resource-rich unconventional plays in North America; conventional assets in North America, Europe, Africa and Asia; global LNG developments; oil sands in Canada; and an inventory of global exploration prospects. Headquartered in Houston, Texas, at June 30, 2024, we employed approximately 10,200 people worldwide and had total assets of $96 billion.
Current wording
ConocoPhillips is one of the world’s leading E&P companies based on production and reserves, with operations and activities in 13 countries. Our diverse, low cost of supply portfolio includes resource-rich unconventional plays in North America; conventional assets in North America, Europe, Africa and Asia; global LNG developments; oil sands in Canada; and an inventory of global exploration prospects. Headquartered in Houston, Texas, at September 30, 2024, we employed approximately 10,300 people worldwide and had total assets of $97 billion.
Previous wording
Announced Acquisition of Marathon Oil Corporation
Current wording
Pending Acquisition of Marathon Oil Corporation
Previous wording
In May 2024, we announced a definitive agreement (the Merger Agreement) to acquire Marathon Oil Corporation (Marathon Oil) in an all-stock transaction (the Marathon Oil acquisition) with an enterprise value of approximately $22.5 billion based upon closing share prices on May 28, 2024, and inclusive of Marathon Oil's debt of approximately $5.4 billion at March 31, 2024. Under the terms of the Merger Agreement, which has been unanimously approved by the boards of directors of each company, Marathon Oil stockholders will receive 0.255 shares of ConocoPhillips common stock for each Marathon Oil share. We expect that the Marathon oil acquisition will add high-quality, low cost of supply, development opportunities to our existing U.S. onshore portfolio and additional LNG capacity to our global LNG portfolio. We anticipate closing in the fourth quarter of 2024, subject to the approval of Marathon Oil stockholders, regulatory clearances and other customary closing conditions. See Item 1A. Risk Factors.
Current wording
In May 2024, we announced a definitive agreement (the Merger Agreement) to acquire Marathon Oil Corporation (Marathon Oil) in an all-stock transaction (the Marathon Oil acquisition), inclusive of Marathon Oil's debt of approximately $5.3 billion at June 30, 2024. Under the terms of the Merger Agreement, which has been unanimously approved by the boards of directors of each company, Marathon Oil stockholders will receive 0.255 shares of ConocoPhillips common stock for each Marathon Oil share. We expect that the Marathon Oil acquisition will add high-quality, low cost of supply, development opportunities to our existing U.S. onshore portfolio and additional LNG capacity to our global LNG portfolio. On August 29, 2024, Marathon Oil announced that its stockholders had approved the transaction. We anticipate closing late in the fourth quarter of 2024, subject to regulatory clearances and other customary closing conditions. See Item 1A. Risk Factors.
Previous wording
Within the first full year following the close of the transaction, we expect our annualized cost and capital expenditure rates to reflect at least $500 million of synergies. Concurrent with our Marathon Oil acquisition announcement, we detailed a plan to repurchase over $7 billion of shares in the first full year following the closing of the transaction and over $20 billion of shares in total over the first three years, in each case at recent commodity prices. Through this plan we expect to retire the equivalent amount of newly issued equity from the transaction in two to three years at recent commodity prices. Further, in conjunction with the Marathon Oil acquisition announcement, we announced a plan to dispose of approximately $2 billion of assets across the portfolio pursuant to ongoing high-grading and optimization efforts.
Current wording
In May 2024, as part of our Marathon Oil acquisition announcement, we stated that we expected at least $500 million in synergies, within the first full year following the close of the transaction. We now expect to reflect synergies that significantly exceed our initial $500 million guidance. Concurrent with our Marathon Oil acquisition announcement, we detailed a plan to repurchase over $7 billion of shares in the first full year following the closing of the transaction and over $20 billion of shares in total over the first three years, based on commodity prices at the time of the announcement. Through this plan we expect to retire the equivalent amount of newly issued equity from the transaction in two to three years. Further, in conjunction with the Marathon Oil acquisition announcement, we announced a plan to dispose of approximately $2 billion of assets across the portfolio pursuant to ongoing high-grading and optimization efforts.
Previous wording
In July, we announced further growth to our global LNG portfolio. We entered into an 18-year agreement securing regasification capacity at the Zeebrugge LNG terminal in Belgium which includes regasification services for approximately 0.75 MTPA of LNG beginning in 2027. We also entered into a long-term LNG sales agreement for approximately 0.5 MTPA into Asia starting in 2027. These agreements provide additional access to the European and Asian natural gas markets.
Current wording
In the third quarter, we announced further growth to our global LNG portfolio. In July, we entered into an 18-year agreement securing regasification capacity at the Zeebrugge LNG terminal in Belgium which includes regasification services for approximately 0.75 MTPA of LNG beginning in 2027. In July, we also entered into a long-term LNG sales agreement for approximately 0.5 MTPA into Asia starting in 2027. These agreements provide additional access to both the European and Asian natural gas markets.
Previous wording
In May, we announced plans to increase our quarterly ordinary dividend from $0.58 per share to $0.78 per share starting in the fourth quarter, representing a 34 percent increase, which will incorporate the current VROC of $0.20 per share into the ordinary dividend. In August, we declared a third-quarter ordinary dividend of $0.58 per share and a VROC payment of $0.20 per share. In August, we also reconfirmed our 2024 planned return of capital to shareholders of at least $9 billion.
Current wording
In October, we declared a fourth-quarter ordinary dividend of $0.78 per share, representing an increase of 34 percent which incorporates the prior VROC equivalent of $0.20 per share. We also reconfirmed our 2024 planned return of capital to shareholders of at least $9 billion. Additionally in October, our Board of Directors approved an increase to our existing share repurchase program authorization by the lesser of $20 billion or the number of shares issued in the Marathon Oil transaction.
Previous wording
Production was 1,945 MBOED in the second quarter of 2024, an increase of 140 MBOED from the same period a year ago. After adjusting for impacts from closed acquisitions and dispositions, second-quarter 2024 production increased by 76 MBOED or four percent from the same period a year ago.
Current wording
Production was 1,917 MBOED in the third quarter of 2024, an increase of 111 MBOED from the same period a year ago. After adjusting for impacts from closed acquisitions and dispositions, third-quarter 2024 production increased by 47 MBOED or three percent from the same period a year ago.
Previous wording
Second-quarter 2024 production resulted in $4.9 billion of cash provided by operating activities. We returned $1.0 billion to shareholders through share repurchases and $0.9 billion through our ordinary dividend and a VROC. We ended the quarter with cash, cash equivalents, restricted cash and short-term investments totaling $6.3 billion and long-term investments in debt securities of $1.0 billion.
Current wording
Third-quarter 2024 production resulted in $5.8 billion of cash provided by operating activities. We returned $1.2 billion to shareholders through share repurchases and $0.9 billion through our ordinary dividend and a VROC. We ended the quarter with cash, cash equivalents, restricted cash and short-term investments totaling $7.1 billion and long-term investments in debt securities of $1.0 billion.
Previous wording
Also in the second quarter of 2024, we re-invested $3.0 billion into the business in the form of capital expenditures and investments, with over half of the expenditures related to flexible, short-cycle unconventional plays in the Lower 48 segment, where our production has access to both domestic and export markets.
Current wording
Also in the third quarter of 2024, we re-invested $2.9 billion into the business in the form of capital expenditures and investments, with over half of the expenditures related to flexible, short-cycle unconventional plays in the Lower 48 segment, where our production has access to both domestic and export markets.
Previous wording
Brent crude oil prices averaged $84.94 per barrel in the second quarter of 2024, an increase of 8 percent compared with $78.39 per barrel in the second quarter of 2023. WTI at Cushing crude oil prices averaged $80.57 per barrel in the second quarter of 2024, an increase of 9 percent compared with $73.78 per barrel in the second quarter of 2023. Oil prices in the second quarter of 2024 were supported by global oil demand growth and continued voluntary production cuts by OPEC Plus members.
Current wording
Brent crude oil prices averaged $80.18 per barrel in the third quarter of 2024, a decrease of eight percent compared with $86.76 per barrel in the third quarter of 2023. WTI at Cushing crude oil prices averaged $75.10 per barrel in the third quarter of 2024, a decrease of nine percent compared with $82.26 per barrel in the third quarter of 2023. Oil prices were lower in the third quarter of 2024 due to slower global demand growth relative to the third quarter of 2023 and higher supplies from non-OPEC Plus countries.
Previous wording
Henry Hub natural gas prices averaged $1.89 per MMBTU in the second quarter of 2024, a decrease of 10 percent compared with $2.09 per MMBTU in the second quarter of 2023. Henry Hub prices decreased due to mild winter weather resulting in excess North American natural gas storage levels.
Current wording
Henry Hub natural gas prices averaged $2.15 per MMBTU in the third quarter of 2024, a decrease of 15 percent compared with $2.54 per MMBTU in the third quarter of 2023. Henry Hub prices decreased due to excess North American natural gas storage levels following a mild 2023-2024 winter. Lower 48 segment realized natural gas prices decreased to $0.18 per MCF in the third quarter of 2024 driven by lower regional prices related to pipeline capacity constraints.
Previous wording
For the second quarter of 2024, our total average realized price was $56.56 per BOE compared with $54.50 per BOE in the second quarter of 2023.
Current wording
For the third quarter of 2024, our total average realized price was $54.18 per BOE compared with $60.05 per BOE in the third quarter of 2023.
Previous wording
•Reported second-quarter 2024 earnings per share of $1.98;
Current wording
•Reported third-quarter 2024 earnings per share of $1.76;
Previous wording
•Generated cash provided by operating activities of $4.9 billion;
Current wording
•Generated cash provided by operating activities of $5.8 billion;
Previous wording
•Distributed $1.9 billion to shareholders, including $1.0 billion through share repurchases and $0.9 billion through the ordinary dividend and VROC; and
Current wording
•Distributed $2.1 billion to shareholders, including $1.2 billion through share repurchases and $0.9 billion through the ordinary dividend and VROC;
Previous wording
•Ended the quarter with cash, cash equivalents, restricted cash and short-term investments of $6.3 billion and long-term investments in debt securities of $1.0 billion.
Current wording
•Ended the quarter with cash, cash equivalents, restricted cash and short-term investments of $7.1 billion and long-term investments of $1.0 billion.
Previous wording
Third-quarter 2024 production is expected to be 1.87 to 1.91 MMBOED, inclusive of approximately 90 MBOED of turnaround impacts in Canada, Lower 48, Alaska, Norway, Malaysia and Qatar. Full-year production is expected to be approximately 1.93 to 1.94 MMBOED, as compared with prior guidance of 1.91 to 1.95 MMBOED, reflecting strong second-quarter results.
Current wording
Fourth-quarter 2024 production is expected to be 1.99 to 2.03 MMBOED. Full-year production is expected to be approximately 1.94 to 1.95 MMBOED, as compared to prior guidance of 1.93 to 1.94 MMBOED.
Previous wording
Unless otherwise indicated, discussion of consolidated results for the three- and six-month periods ended June 30, 2024, is based on a comparison with the corresponding period of 2023.
Current wording
Unless otherwise indicated, discussion of consolidated results for the three- and nine-month periods ended September 30, 2024, is based on a comparison with the corresponding period of 2023.
Previous wording
We explore for, produce, transport and market crude oil, bitumen, natural gas, LNG and NGLs on a worldwide basis. At June 30, 2024, our operations were producing in the U.S., Norway, Canada, Australia, China, Malaysia, Qatar and Libya.
Current wording
We explore for, produce, transport and market crude oil, bitumen, natural gas, LNG and NGLs on a worldwide basis. In the quarter ended September 30, 2024, our operations were producing in the U.S., Norway, Canada, Australia, China, Malaysia, Qatar and Libya.
Previous wording
Total production in the second quarter of 2024 was 1,945 MBOED, an increase of 140 MBOED or eight percent. Total production in the six-month period of 2024 was 1,923 MBOED, an increase of 125 MBOED or seven percent. Production increases include:
Current wording
Total production in the third quarter of 2024 was 1,917 MBOED, an increase of 111 MBOED or six percent from the same period a year ago. Total production in the nine-month period of 2024 was 1,921 MBOED, an increase of 120 MBOED or seven percent from the same period a year ago. Production increases include:
Previous wording
Production for the first six months of 2024 was 1,923 MBOED, an increase of 125 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions, production increased 60 MBOED or three percent from the same period a year ago.
Current wording
After adjusting for impacts from closed acquisitions and dispositions, third-quarter 2024 production increased by 47 MBOED or three percent from the same period a year ago. After adjusting for closed acquisitions and dispositions, production in the nine-month period of 2024 increased 55 MBOED or three percent from the same period a year ago.
Previous wording
Sales and other operating revenues increased $1,269 million in the second quarter of 2024 and increased $306 million in the six-month period of 2024, respectively. Increases in the second quarter were due to higher volumes of $573 million and higher realized prices of $548 million. Increases in the six-month period of 2024 were due to higher volumes of $949 million and higher realized prices of $227 million, partially offset by lower commercial performance.
Current wording
Sales and other operating revenues decreased $1,209 million in the third quarter of 2024 and decreased $903 million in the nine-month period of 2024, respectively. Decreases in the third quarter were due to lower realized prices of $865 million, partially offset by higher volumes of $404 million. Decreases in the nine-month period of 2024 were due to lower realized natural gas prices of $642 million, partially offset by higher volumes of $1,368 million. Additional decreases to revenues in both the three- and nine-month periods of 2024 resulted from the timing of sales as compared with the corresponding periods of 2023.
Previous wording
Purchased commodities for the three- and six-month periods of 2024 increased $242 million and decreased $562 million, respectively. The second quarter of 2024 increase was driven by higher purchased volumes across all commodities and higher crude prices, partially offset by lower natural gas and power prices. The six-month period of 2024 decrease was driven by lower natural gas and power prices, partially offset by higher crude prices and higher purchased volumes across all commodities.
Current wording
Purchased commodities for the three- and nine-month periods of 2024 decreased $796 million and $1,358 million, respectively. The third quarter of 2024 decrease was driven by lower gas and crude prices, partially offset by higher crude volumes. The nine-month period of 2024 decrease was driven by lower gas prices, partially offset by higher crude volumes.
Previous wording
Production and operating expenses for the three- and six-month periods of 2024 increased $278 million and $514 million, respectively, due to higher lease operating expenses, transportation related costs and well work activities in our Lower 48 and Alaska segments in addition to higher production volumes primarily in our Canada segment.
Current wording
Production and operating expenses for the three- and nine-month periods of 2024 increased $266 million and $780 million, respectively, due to higher lease operating expenses, transportation related costs and well work activities in our Lower 48 and Alaska segments, higher volumes primarily in our Canada and Lower 48 segments as well as higher expenses associated with the Surmont turnaround in our Canada segment.
Previous wording
DD&A expenses for the three- and six-month periods of 2024 increased $324 million and $593 million, respectively, mainly due to higher rates in our Lower 48 and Alaska segments and higher volumes primarily in our Canada segment.
Current wording
DD&A expenses for the three- and nine-month periods of 2024 increased $295 million and $888 million, respectively, mainly due to higher rates in our Lower 48 and Alaska segments and higher volumes primarily in our Canada and Lower 48 segments.
Previous wording
Unless otherwise indicated, discussion of segment results for the three- and six-month periods ended June 30, 2024, is based on a comparison with the corresponding period of 2023 and are shown after-tax.
Current wording
Unless otherwise indicated, discussion of segment results for the three- and nine-month periods ended September 30, 2024, is based on a comparison with the corresponding period of 2023 and are shown after-tax.
Previous wording
Earnings in the second quarter of 2024 included higher sales revenues resulting from higher realized prices of $131 million, partially offset by lower volumes of $45 million. Earnings decreases in the second quarter of 2024 included higher production and operating expenses of $22 million driven by higher well work activity, higher DD&A expenses of $39 million due to higher rates as a result of prior year-end downward reserve revisions and higher impairments of $24 million due to a project cancellation.
Current wording
Earnings in the third quarter of 2024 included lower revenues resulting from lower realized prices of $68 million, lower volumes of $16 million. Decreases to earnings in the third quarter of 2024 included higher DD&A expenses of $36 million due to higher rates as a result of prior year-end downward reserve revisions and higher production and operating expenses of $33 million driven by higher lease operating expenses and well work activity. The decreases to earnings were partially offset by lower taxes other than income taxes of $38 million due to lower taxes driven by increased capital expenditures.
Previous wording
Earnings in the six-month period of 2024 included higher sales revenues resulting from higher realized prices of $152 million, partially offset by lower volumes of $55 million. Earnings decreases in the six-month period of 2024 included higher production and operating expenses of $51 million, driven by higher well work activity and higher transportation related costs, higher DD&A expenses of $86 million due to higher rates as a result of year-end downward reserve revisions and higher impairments of $24 million due to a project cancellation.
Current wording
Earnings in the nine-month period of 2024 included lower revenues resulting from lower volumes of $55 million, partially offset by higher realized prices of $80 million. Decreases to earnings in the nine-month period of 2024 included higher DD&A expenses of $123 million due to higher rates as a result of year-end downward reserve revisions, higher production and operating expenses of $83 million driven by higher well work activity and lease operating expenses. The decreases to earnings were partially offset by lower taxes other than income taxes of $47 million due to lower taxes driven by increased capital expenditures.
Previous wording
The Lower 48 segment consists of operations located in the U.S. Lower 48 states, as well as producing properties in the Gulf of Mexico. As of June 30, 2024, the Lower 48 contributed 61 percent of our consolidated liquids production and 74 percent of our consolidated natural gas production.
Current wording
The Lower 48 segment consists of operations located in the U.S. Lower 48 states, producing properties in the Gulf of Mexico and commercial operations. As of September 30, 2024, the Lower 48 contributed 63 percent of our consolidated liquids production and 74 percent of our consolidated natural gas production.
Previous wording
Lower 48 reported earnings of $1,259 million and $2,640 million in the three- and six-month periods of 2024, respectively, compared with earnings of $1,230 million and $3,082 million in the three- and six-month periods of 2023, respectively.
Current wording
Lower 48 reported earnings of $1,241 million and $3,881 million in the three- and nine-month periods of 2024, respectively, compared with earnings of $1,781 million and $4,863 million in the three- and nine-month periods of 2023, respectively.
Previous wording
Average production increased 42 MBOED and 26 MBOED in the three- and six-month periods of 2024, respectively. Increases to production were primarily due to new wells online from our development programs in the Delaware Basin, Eagle Ford, Midland Basin and Bakken.
Current wording
Average production increased 64 MBOED and 38 MBOED in the three- and nine-month periods of 2024, respectively. Increases to production were primarily due to new wells online from our development programs in the Delaware Basin, Eagle Ford, Midland Basin and Bakken.
Previous wording
Production increases were partially offset by normal field decline.
Current wording
Production increases were partly offset by normal field decline.
Previous wording
Our Canadian operations consist of the Surmont oil sands development in Alberta and the Montney unconventional play in British Columbia. As of June 30, 2024, Canada contributed 12 percent of our consolidated liquids production and five percent of our consolidated natural gas production.
Current wording
The Canada segment operations include the Surmont oil sands development in Alberta, the Montney unconventional play in British Columbia and commercial operations. As of September 30, 2024, Canada contributed 10 percent of our consolidated liquids production and five percent of our consolidated natural gas production.
Previous wording
Earnings in the second quarter of 2024 included higher sales revenues resulting from higher volumes of $310 million, driven by our increased working interest in Surmont, and realized prices of $67 million. Earnings decreases in the second quarter of 2024 included higher production and operating expenses of $73 million, driven by our increased working interest in Surmont, and higher DD&A expenses of $62 million.
Current wording
Earnings in the third quarter of 2024 included lower revenues resulting from lower realized prices of $49 million, partially offset by higher volumes of $104 million driven by our increased working interest in Surmont. Additional decreases to revenues resulted from the timing of sales as compared with the corresponding period of 2023. Decreases to earnings in the third quarter of 2024 included the absence of a $92 million third-quarter 2023 tax benefit recognized upon the closing of a Canada Revenue Agency audit, higher production and operating expenses of $89 million, driven by $61 million related to our increased working interest in Surmont and $50 million in expenses associated with a third quarter planned turnaround at Surmont, and higher DD&A expenses of $40 million.
Previous wording
Earnings in the six-month period of 2024 included higher sales revenues resulting from higher volumes of $558 million, driven by our increased working interest in Surmont, and realized prices of $123 million. Earnings decreases in the six-month period of 2024 included higher production and operating expenses of $134 million, driven by our increased working interest in Surmont, and higher DD&A expenses of $113 million.
Current wording
Earnings in the nine-month period of 2024 included higher revenues resulting from higher volumes of $666 million, driven by our increased working interest in Surmont, and higher realized prices of $76 million. Decreases to earnings in the nine-month period of 2024 included higher production and operating expenses of $231 million, driven by $160 million related to our increased working interest in Surmont and $61 million in expenses associated with a third quarter planned turnaround at Surmont, higher DD&A expenses of $156 million, driven by higher volumes, and the absence of a $92 million third-quarter 2023 tax benefit recognized upon the closing of a Canada Revenue Agency audit.
Previous wording
Average production increased 91 MBOED and 86 MBOED in the three- and six-month periods of 2024, respectively. Increases to production resulted from our increased working interest in Surmont as well as new wells online in the Montney and Surmont. See Note 3.
Current wording
Average production increased 44 MBOED and 72 MBOED in the three- and nine-month periods of 2024, respectively. Increases to production resulted from our increased working interest in Surmont as well as new wells online in the Montney and Surmont. See Note 3.
Previous wording
Europe, Middle East and North Africa reported earnings of $251 million and $555 million in the three- and six-month periods of 2024, respectively, compared with earnings of $264 million and $629 million in the three- and six-month periods of 2023, respectively.
Current wording
Europe, Middle East and North Africa reported earnings of $298 million and $853 million in the three- and nine-month periods of 2024, respectively, compared with earnings of $253 million and $882 million in the three- and nine-month periods of 2023, respectively.
Previous wording
Average consolidated production increased 12 MBOED and 7 MBOED in the three- and six-month periods of 2024, respectively. Increases to production were primarily due to new wells online and improved performance in both Norway and Libya.
Current wording
Average consolidated production increased 16 MBOED and 11 MBOED in the three- and nine-month periods of 2024, respectively. Increases to production were primarily due to new wells online and improved performance in both Norway and Libya.
Previous wording
In the second quarter of 2024, we charged $22 million before-tax as dry hole expenses primarily for two partner operated exploration wells in the Alvheim area in the Norwegian sector of the North Sea. Additionally, in the first quarter of 2024, we charged $18 million before-tax as dry hole expense for the Busta suspended discovery well on license PL782S that was drilled in 2019.
Current wording
In the nine-month period of 2024, we charged approximately $40 million before-tax as dry hole expenses primarily for two partner operated exploration wells in the Alvheim area in the Norwegian sector of the North Sea and the Busta suspended discovery well on license PL782S that was drilled in 2019.
Previous wording
Asia Pacific reported earnings of $444 million and $956 million in the three- and six-month periods of 2024, respectively, compared with earnings of $387 million and $909 million in the three- and six-month periods of 2023, respectively.
Current wording
Asia Pacific reported earnings of $455 million and $1,411 million in the three- and nine-month periods of 2024, respectively, compared with earnings of $465 million and $1,374 million in the three- and nine-month periods of 2023, respectively.
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Production increases were partially offset by:
Current report — wording carried from elsewhere
•Addressing Scope 3 (end-use) emissions
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
•Announced agreement to acquire Marathon Oil in an all-stock transaction;
Previous report — wording carried elsewhere
After adjusting for impacts from closed acquisitions and dispositions, second-quarter 2024 production increased by 76 MBOED or four percent from the same period a year ago.
Previous report — wording carried elsewhere
Production decreases were partly offset by new wells online and improved performance.