ConocoPhillips (NYSE:COP) stock fell 1.83% (As on February 9, 11:24:28 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23, driven by record oil and gas production. Due to new project start-ups and acquisitions, as well as higher output in the U.S., ConocoPhillips delivered record full-year total company and Lower 48 production of 1.826 million barrels of oil equivalent per day (boed) and 1.067 million boed, respectively. Excluding special items, fourth-quarter 2023 adjusted earnings were $2.9 billion, compared with fourth-quarter 2022 adjusted earnings of $3.4 billion. For the full year, ConocoPhillips generated cash provided by operating activities of $20.0 billion and cash from operations (CFO) of $21.3 billion. The company has distributed $11.0 billion to shareholders through a three-tier framework, including $5.6 billion through the ordinary dividend and variable return of cash (VROC) and $5.4 billion through share repurchases. The company has achieved 17% return on capital employed; 19% cash-adjusted return on capital employed. The company has ended the year with cash and short-term investments of $6.9 billion.

Moreover, the company has acquired the remaining 50% interest in Surmont for approximately $2.7 billion as well as future contingent payments of up to $0.4 billion CAD ($0.3 billion). The company has made final investment decision (FID) on the Willow project and has progressed global LNG strategy through expansion in Qatar, FID at Port Arthur LNG, regasification agreements in the Netherlands and offtake agreements in Mexico. The company has reached first production at several subsea tiebacks in Norway, Surmont Pad 267 in Canada and Bohai Phase 4B in China. It has commenced startup at the second phase of Montney’s central processing facility in Canada.

COP in the fourth quarter of FY 23 has reported the adjusted earnings per share of $2.40, beating the analysts’ estimates for the adjusted earnings per share of $2.08, according to Zacks Investment Research. The company had reported the adjusted revenue of $15.31 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $14.47 billion.

Additionally, COP announced its 2024 planned return of capital to shareholders of $9 billion. The company declared an ordinary dividend of $0.58 per share and a VROC of $0.20 per share, both payable March 1, 2024, to stockholders of record at the close of business on Feb. 19, 2024.

Looking forward, ConocoPhillips expects 2024 production in the range of 1.91 million to 1.95 million barrels of oil equivalent per day. The guidance for this year’s total capital expenditure is $11.0 billion to $11.5 billion.