Houston-based multinational energy corporation ConocoPhillips has released its third-quarter 2023 financial results, reporting earnings of $2.8 billion, or $2.32 per share. This figure represents a decrease from the same quarter in 2022 when the company's earnings were $4.5 billion, or $3.55 per share. However, when excluding special items, ConocoPhillips' adjusted earnings for Q3 2023 were $2.6 billion, or $2.16 per share, compared to $4.6 billion, or $3.60 per share, in Q3 2022.

The special items for the current quarter mainly consisted of a benefit associated with the reversal of a tax reserve and a gain from the divestiture of a Lower 48 equity investment.

In terms of operational highlights, ConocoPhillips achieved record production for the third consecutive quarter. The company also announced the purchase of the remaining 50% interest in Surmont for approximately $2.7 billion, along with future contingent payments of up to $0.4 billion CAD ($0.3 billion).

During the quarter, Surmont Pad 267 achieved first steam, and the second phase of Montney's central processing facility (CPF2) came online in Canada. ConocoPhillips' production for Q3 2023 reached 1,806 thousand barrels of oil equivalent per day (MBOED) globally, with 1,083 MBOED from its Lower 48 operations.

Cash provided by operating activities for the quarter amounted to $5.4 billion, with $5.5 billion generated from cash operations. The company distributed $2.6 billion to shareholders through a combination of the ordinary dividend and variable return of cash (VROC), and an additional $1.3 billion was used for share repurchases.

ConocoPhillips announced a 14% increase in its quarterly ordinary dividend, which will amount to $0.58 per share, payable on December 1, 2023, to stockholders of record as of November 14, 2023. The company also paid its fourth-quarter VROC of $0.60 per share on October 16, 2023.

Looking ahead, ConocoPhillips provided updated guidance, expecting its fourth-quarter 2023 production to be between 1.86 and 1.90 million barrels of oil equivalent per day (MMBOED). The full-year production is estimated to be approximately 1.82 MMBOED, boosted by the Surmont acquisition.

Despite lower prices impacting earnings and adjusted earnings compared to the same period last year, ConocoPhillips remains optimistic about its long-term growth prospects and its focus on delivering value to shareholders. The company's chairman and CEO, Ryan Lance, reiterated their commitment to executing their returns-focused value proposition.

ConocoPhillips will hold a conference call today to discuss these results. Further details can be found on the company's investor webpage.