Analyst Note| Allen Good, CFA |
ConocoPhillips continued to benefit from higher oil and gas prices and greater volumes during the first quarter. Adjusted earnings soared to $4.3 billion compared with $0.9 billion a year earlier. Given the strong performance, management increased shareholder returns 25% or $2 billion for the full year to $10 billion (7.5% of market capitalization). It already returned $2.3 billion during the first quarter through the regular dividend, variable return of cash, and repurchases. We plan to incorporate the latest guidance and results into our model, which along with an updated price deck will result in a fair value estimate increase. Our narrow moat rating is unchanged.