ConocoPhillips beat Q4 estimates with $3.12 EPS and named William Bullock CEO. Exxon's record $55.7B profit missed consensus. COP up 2.3%, XOM down 1.8% after hours.
ConocoPhillips reported fourth-quarter earnings that beat analyst estimates. The company also named a new chief executive. Exxon Mobil posted a record annual profit of $55.7 billion for 2023. The company fell short of consensus expectations on both revenue and earnings per share.
ConocoPhillips earned $3.12 per share on an adjusted basis. The consensus was $2.87. Revenue came in at $18.9 billion, ahead of the $17.5 billion forecast. The beat was driven by higher-than-expected production from the Permian Basin and the Eagle Ford shale. Stronger margins on its liquefied natural gas sales also contributed.
William Bullock, previously chief operating officer, takes over as chief executive. The board described the transition as part of a long-planned succession. Bullock said the company would maintain its focus on capital discipline and shareholder returns. He targeted a 30% dividend increase and $5 billion in share buybacks this year.
Exxon Mobil's record profit came from a surge in oil and gas prices. The company faced headwinds in the fourth quarter. Refining margins narrowed sharply. Production costs rose in the Permian. The company earned $2.48 per share, missing the $2.65 consensus. Revenue of $95.2 billion also fell short of the $97.3 billion estimate.
COP shares gained 2.3% in extended trading. XOM shares slipped 1.8%. The moves reward execution and leadership clarity while penalizing a miss even against a record backdrop, traders said.
Both companies carry an Alpha Score of 62 out of 100, placing them in the Moderate category. The scores reflect solid fundamentals with limited near-term catalyst potential given the current commodity price outlook, according to AlphaScala's proprietary model.
ConocoPhillips' production averaged 1.79 million barrels of oil equivalent per day in the quarter, up 4% from a year earlier. The company guided for 2024 production of 1.82 million to 1.86 million boe/d. It also announced a $2.5 billion investment in the Willow project in Alaska. The Biden administration granted final approval last month.
Exxon Mobil's production rose 2% to 3.78 million boe/d. The company flagged a decline in its Permian output due to weather-related outages. It said it would cut capital spending by $1 billion in 2024, focusing on high-return projects in Guyana and the Permian.
ConocoPhillips' board declared a quarterly dividend of $0.58 per share, up 10% from the prior quarter. Exxon Mobil maintained its dividend at $0.95 per share. For a broader view of the sector, see 10 Energy Stocks Yielding Over 3% After the War Rally Fades.
Neither company gave specific guidance for the first quarter. Analysts expect both to benefit from the current oil price environment, with Brent crude above $80 a barrel. The key risk remains a potential demand slowdown in China and Europe.
The two companies will host conference calls Thursday morning. Analysts will press Bullock on his plans for further cost cuts. They will press Exxon CEO Darren Woods on the outlook for refining margins.
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