Latest news with #MarathonOil
Yahoo
11-05-2025
- Business
- Yahoo
This Top Oil Stock Is a Cash-Producing Machine
ConocoPhillips produced solid first-quarter results. The oil company is reducing its 2025 spending plan while maintaining its production growth outlook. It expects to deliver peer-leading free cash flow growth through 2029. 10 stocks we like better than ConocoPhillips › ConocoPhillips (NYSE: COP) has spent several years building a low-cost oil company. It has sold off higher-cost assets and recycled the capital to expand its lower-cost resources. The result is an oil company that can produce a lot of cash at lower oil prices. That was on full display during the first quarter. Meanwhile, with further improvements in its cash flow ahead, the oil stock will become an even more efficient cash-producing machine. ConocoPhillips produced an average of nearly 2.4 million barrels of oil equivalent (BOE) per day during the first quarter. That was an increase of 487,000 BOE per day from the prior-year period, fueled largely by its acquisition of Marathon Oil. However, even after adjusting for the impact of acquisitions and asset sales, its production was up 5% from the year-ago period due to its investments to grow its output in low-cost regions. That higher production enabled ConocoPhillips to generate $5.5 billion of cash from operations during the period. It used that money to help fund $3.4 billion of capital expenditures and investments to maintain and grow its production. The oil company used its free cash flow and strong balance sheet to repurchase $1.5 billion of its shares and pay $1 billion in dividends. The company also retired $500 million of debt at maturity. The oil giant ended the period with $7.5 billion in cash and short-term investments on its balance sheet and another $1 billion in long-term investments. It enhanced its balance sheet by repaying debt and selling $1.3 billion of noncore assets to maintain a strong cash position. "Amid a volatile macro environment, we remain confident in the competitive advantages provided by our differentiated portfolio, strong balance sheet, and disciplined capital allocation framework that prioritizes returns on and of capital to shareholders," stated CEO Ryan Lance in the first-quarter earnings press release. The company's strong competitive position enables it to operate even more efficiently this year. ConocoPhillips is reducing its full-year capital and operating cost guidance while maintaining its production outlook. ConocoPhillips now expects its capital spending to be in the range of $12.3 billion-$12.6 billion, down from $12.9 billion. It's also lowering its adjusted operating cost guidance range from $10.9 billion-$11.1 billion to $10.7 billion-$10.9 billion. Despite reducing spending, the company still expects to produce between 2.3 million and 2.4 million BOE per day this year. That puts the company in a position to produce more free cash flow at the current oil price point than it would have had in its prior outlook. The oil company expects to produce a lot more free cash flow in the future. Its investments in LNG and Alaska have it on track to generate an incremental $6 billion of annual free cash flow by 2029 (assuming oil averages around $70 a barrel). That positions the company to deliver sector-leading free cash flow growth over that period. While oil is currently down to around $60 a barrel, ConocoPhillips' strategy still positions it to produce significant incremental free cash flow over the coming years. That will give the oil company more money to return to shareholders through a growing dividend and share repurchase program. The company aims to deliver dividend growth within the top 25% of companies in the S&P 500 (SNPINDEX: ^GSPC). It's also targeting over $20 billion in share repurchases over the next few years. ConocoPhillips has strategically invested in expanding its low-cost oil resources through acquisitions and organic development projects. That strategy has the company on track to produce more free cash flow this year to help mute the impact of lower oil prices, and even more by 2029. Because of that, the company should return more money to shareholders in the future through a rapidly rising dividend and a meaningful share repurchase program. This strategy could give the oil company the fuel to produce strong total returns by the end of the decade, making it look like an attractive long-term investment opportunity. Before you buy stock in ConocoPhillips, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and ConocoPhillips wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $617,181!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $719,371!* Now, it's worth noting Stock Advisor's total average return is 909% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Matt DiLallo has positions in ConocoPhillips. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This Top Oil Stock Is a Cash-Producing Machine was originally published by The Motley Fool
Business Wire
08-05-2025
- Business
- Business Wire
ConocoPhillips announces Bill Bullock to retire after 39 years with the company
HOUSTON--(BUSINESS WIRE)--ConocoPhillips (NYSE: COP) today announced that W.L. (Bill) Bullock, executive vice president and chief financial officer, will retire from ConocoPhillips after 39 years of distinguished service. Andy O'Brien, currently senior vice president, Strategy, Commercial, Sustainability and Technology, will succeed Bill as chief financial officer, effective June 1, 2025. Andy will also retain responsibility for Strategy, Commercial and Sustainability. Bill began his career with Conoco in 1986 and held numerous engineering, operations, commercial, and business development roles of increasing responsibility before joining the company's executive leadership team in 2018 and becoming chief financial officer in 2020. 'I want to thank Bill for his outstanding leadership, dedication and significant contributions over the course of his distinguished career at ConocoPhillips,' said Ryan Lance, chairman and chief executive officer. 'Bill has contributed to virtually every area of our business, working in many locations across our global portfolio. I wish Bill the very best in retirement and look forward to Andy's ongoing leadership as he assumes his new role.' --- # # # --- About ConocoPhillips As a leading global exploration and production company, ConocoPhillips is uniquely equipped to deliver reliable, responsibly produced oil and gas. Our deep, durable and diverse portfolio is built to meet growing global energy demands. Together with our high-performing operations and continuously advancing technology, we are well positioned to deliver strong, consistent financial results, now and for decades to come. For more information, go to CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. This news release contains forward-looking statements as defined under the federal securities laws. Forward-looking statements relate to future events, including, without limitation, statements regarding our future financial position, business strategy, budgets, projected revenues, costs and plans, objectives of management for future operations, the anticipated benefits of our acquisition of Marathon Oil Corporation (Marathon Oil), the anticipated impact of our acquisition of Marathon Oil on the combined company's business and future financial and operating results and the expected amount and timing of synergies from our acquisition of Marathon Oil and other aspects of our operations or operating results. Words and phrases such as 'ambition,' 'anticipate,' 'believe,' 'budget,' 'continue,' 'could,' 'effort,' 'estimate,' 'expect,' 'forecast,' 'goal,' 'guidance,' 'intend,' 'may,' 'objective,' 'outlook,' 'plan,' 'potential,' 'predict,' 'projection,' 'seek,' 'should,' 'target,' 'will,' 'would,' and other similar words can be used to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward- looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future performance and involve certain risks, uncertainties and other factors beyond our control. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in the forward-looking statements. Factors that could cause actual results or events to differ materially from what is presented include, but are not limited to, the following: effects of volatile commodity prices, including prolonged periods of low commodity prices, which may adversely impact our operating results and our ability to execute on our strategy and could result in recognition of impairment charges on our long-lived assets, leaseholds and nonconsolidated equity investments; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas, including changes as a result of any ongoing military conflict and the global response to such conflict, security threats on facilities and infrastructure, global health crises, the imposition or lifting of crude oil production quotas or other actions that might be imposed by OPEC and other producing countries or the resulting company or third-party actions in response to such changes; the potential for insufficient liquidity or other factors, such as those described herein, that could impact our ability to repurchase shares and declare and pay dividends, whether fixed or variable; potential failures or delays in achieving expected reserve or production levels from existing and future oil and gas developments, including due to operating hazards, drilling risks and the inherent uncertainties in predicting reserves and reservoir performance; reductions in our reserve replacement rates, whether as a result of significant declines in commodity prices or otherwise; unsuccessful exploratory drilling activities or the inability to obtain access to exploratory acreage; failure to progress or complete announced and future development plans related to constructing, modifying or operating related to constructing, modifying or operating E&P and LNG facilities, or unexpected changes in costs, inflationary pressures or technical equipment related to such plans; significant operational or investment changes imposed by legislative and regulatory initiatives and international agreements addressing environmental concerns, including initiatives addressing the impact of global climate change, such as limiting or reducing GHG emissions, regulations concerning hydraulic fracturing, methane emissions, flaring or water disposal and prohibitions on commodity exports; broader societal attention to and efforts to address climate change may cause substantial investment in and increased adoption of competing or alternative energy sources; risks, uncertainties and high costs that may prevent us from successfully executing on our Climate Risk Strategy; lack or inadequacy of, or disruptions in reliable transportation for our crude oil, bitumen, natural gas, LNG and NGLs; inability to timely obtain or maintain permits, including those necessary for construction, drilling and/or development, or inability to make capital expenditures required to maintain compliance with any necessary permits or applicable laws or regulations; potential disruption or interruption of our operations and any resulting consequences due to accidents, extraordinary weather events, supply chain disruptions, civil unrest, political events, war, terrorism, cybersecurity threats or information technology failures, constraints or disruptions; liability for remedial actions, including removal and reclamation obligations, under existing or future environmental regulations and litigation; liability resulting from pending or future litigation or our failure to comply with applicable laws and regulations; general domestic and international economic, political and diplomatic developments, including deterioration of international trade relationships, the imposition of trade restrictions or tariffs relating to commodities and material or products (such as aluminum and steel) used in the operation of our business, expropriation of assets, changes in governmental policies relating to commodity pricing, including the imposition of price caps, sanctions or other adverse regulations or taxation policies; competition and consolidation in the oil and gas E&P industry, including competition for sources of supply, services, personnel and equipment; any limitations on our access to capital or increase in our cost of capital or insurance, including as a result of illiquidity, changes or uncertainty in domestic or international financial markets, foreign currency exchange rate fluctuations or investment sentiment; challenges or delays to our execution of, or successful implementation of the acquisition of Marathon Oil or any future asset dispositions or acquisitions we elect to pursue; potential disruption of our operations, including the diversion of management time and attention; our inability to realize anticipated cost savings or capital expenditure reductions; difficulties integrating acquired businesses and technologies; or other unanticipated changes; our inability to deploy the net proceeds from any asset dispositions that are pending or that we elect to undertake in the future in the manner and timeframe we anticipate, if at all; the operation, financing and management of risks of our joint ventures; the ability of our customers and other contractual counterparties to satisfy their obligations to us, including our ability to collect payments when due from the government of Venezuela or PDVSA; uncertainty as to the long-term value of our common stock; and other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission. Unless legally required, ConocoPhillips expressly disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Yahoo
24-04-2025
- Business
- Yahoo
ConocoPhillips plans layoffs as part of restructuring effort following Marathon Oil acquisition
ConocoPhillips, a leading US oil and gas producer, has announced plans to reduce its workforce as part of a broader initiative to cut costs and streamline operations following the company's $23bn acquisition of Marathon Oil, reported Reuters, citing sources. The oil and gas sector is currently grappling with financial challenges as companies struggle to maintain profitability with oil prices around $63 per barrel. The planned layoffs at ConocoPhillips reflect wider industry trends, with other oil giants such as Chevron and SLB also announcing job cuts earlier this year. To guide its restructuring, ConocoPhillips has enlisted the services of Boston Consulting Group, the report said. The internal project, dubbed 'Competitive Edge', aims to centralise certain functions and reorganise both operational and corporate sectors. "We are always looking at how we can be more efficient with the resources we have. As part of this process, we have informed employees that workforce reductions are anticipated," a ConocoPhillips spokesperson was quoted as saying. The specifics of the layoffs are expected to be disclosed in the fourth quarter (Q4), with the company yet to determine the extent of the staff reductions. As of the end of 2024, ConocoPhillips employed approximately 11,800 individuals across 14 countries. The company has grown significantly through major acquisitions including the purchase of Marathon Oil, Shell's Permian Basin assets and Concho Resources. However, the industry has faced difficulties, with ConocoPhillips previously laying off up to 500 Houston employees in 2020 due to the Covid pandemic's impact on energy demand and prices. In addition to the restructuring, ConocoPhillips is reportedly looking to divest some assets including oil and gas holdings in Oklahoma acquired from Marathon Oil. These moves are part of the company's strategy to optimise its portfolio and focus on core areas of business. "ConocoPhillips plans layoffs as part of restructuring effort following Marathon Oil acquisition" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
24-04-2025
- Business
- Yahoo
ConocoPhillips plans layoffs as part of broad restructuring
By Sheila Dang and Ernest Scheyder HOUSTON (Reuters) - ConocoPhillips, a top U.S. oil and gas producer, plans to cut staff, the company said on Tuesday, amid a broad push to rein in costs and streamline operations after its $23 billion buyout of rival Marathon Oil. The job cuts are the latest sign of pain in the oil and gas industry, which is facing higher costs and lower revenues as prices hover around $63 a barrel. Many companies say they cannot drill profitably if oil prices fall under $65 a barrel. Oil giants Chevron and SLB announced their own layoffs earlier this year. Houston-based ConocoPhillips hired management consulting firm Boston Consulting Group to advise on the restructuring and layoff program, which is being referred to internally as "Competitive Edge," two sources told Reuters. The sources declined to be named as the discussions were confidential. ConocoPhillips has started by restructuring its operations and announced it would centralize some functions, two sources added. The company previously had six operating segments: Alaska; Lower 48; Canada; Europe, Middle East and North Africa; Asia Pacific; and Other International, according to its annual report. The operations restructuring will be followed by reorganizations in corporate and support functions, one source added. "We are always looking at how we can be more efficient with the resources we have. As part of this process, we have informed employees that workforce reductions are anticipated," a ConocoPhillips spokesperson said in a statement. Details of the layoffs have not been announced but are expected in the fourth quarter of this year, four sources said. The company has not determined how large the cuts will be, three sources added. The company had about 11,800 employees in 14 countries at the end of 2024, according to its annual report. ConocoPhillips has bulked up in recent years through hefty acquisitions. Besides its acquisition of Marathon Oil last year, it bolstered its position in the Permian Basin of Texas and New Mexico with a $10 billion deal to buy Shell's assets and its acquisition of Concho Resources in 2021. The company laid off up to 500 Houston employees in 2020 as the COVID-19 pandemic slashed global energy demand and pushed energy prices down. Marathon Oil had also laid off more than 500 workers in Texas, ahead of its merger with ConocoPhillips. ConocoPhillips is also focused on divesting some of its assets, one of the sources said. The company was exploring the sale of oil and gas assets in Oklahoma that it inherited from its $22.5 billion takeover of Marathon Oil last year, Reuters reported earlier this month.
Reuters
22-04-2025
- Business
- Reuters
Exclusive: ConocoPhillips plans layoffs as part of broad restructuring
HOUSTON, April 22 (Reuters) - ConocoPhillips (COP.N), opens new tab, a top U.S. oil and gas producer, plans to cut staff, the company said on Tuesday, amid a broad push to rein in costs and streamline operations after its $23 billion buyout of rival Marathon Oil. The job cuts are the latest sign of pain in the oil and gas industry, which is facing higher costs and lower revenues as prices hover around $63 a barrel . Many companies say they cannot drill profitably if oil prices fall under $65 a barrel. Oil giants Chevron (CVX.N), opens new tab and SLB (SLB.N), opens new tab announced their own layoffs earlier this year. Houston-based ConocoPhillips hired management consulting firm Boston Consulting Group to advise on the restructuring and layoff program, which is being referred to internally as "Competitive Edge," two sources told Reuters. The sources declined to be named as the discussions were confidential. ConocoPhillips has started by restructuring its operations and announced it would centralize some functions, two sources added. The company previously had six operating segments: Alaska; Lower 48; Canada; Europe, Middle East and North Africa; Asia Pacific; and Other International, according to its annual report. The operations restructuring will be followed by reorganizations in corporate and support functions, one source added. "We are always looking at how we can be more efficient with the resources we have. As part of this process, we have informed employees that workforce reductions are anticipated," a ConocoPhillips spokesperson said in a statement. Details of the layoffs have not been announced but are expected in the fourth quarter of this year, four sources said. The company has not determined how large the cuts will be, three sources added. The company had about 11,800 employees in 14 countries at the end of 2024, according to its annual report. ConocoPhillips has bulked up in recent years through hefty acquisitions. Besides its acquisition of Marathon Oil last year, it bolstered its position in the Permian Basin of Texas and New Mexico with a $10 billion deal to buy Shell's assets and its acquisition of Concho Resources in 2021. The company laid off up to 500 Houston employees in 2020 as the COVID-19 pandemic slashed global energy demand and pushed energy prices down. Marathon Oil had also laid off more than 500 workers in Texas, ahead of its merger with ConocoPhillips. ConocoPhillips is also focused on divesting some of its assets, one of the sources said. The company was exploring the sale of oil and gas assets in Oklahoma that it inherited from its $22.5 billion takeover of Marathon Oil last year, Reuters reported earlier this month.
