ConocoPhillips CEO Ryan Lance will retire after 14 years, handing the role to CFO Andy O'Brien on September 1. The move comes as the oil and gas producer posted its highest net income since 2022, lifted by strong oil prices and a jump in quarterly revenue.
Lance steps down after 14 years at the helm
Ryan Lance will retire as ConocoPhillips' chief executive after 14 years leading the company, with CFO Andy O'Brien set to take over as CEO on September 1, the company said Thursday. Lance took the helm in 2012 after ConocoPhillips split from refining business Phillips 66, leaving it as a pure exploration and production company. He will become executive chair once O'Brien takes over.
Under his tenure, ConocoPhillips grew into one of the largest independent oil and gas producers globally, with operations spanning North America, Europe, the Asia-Pacific region and the Middle East. Dan Pickering, chief investment officer at Pickering Energy Partners, said Lance has done "a great job".
Workforce cuts and multibillion-dollar acquisitions preceded the exit
The exit follows a volatile stretch for the crude oil producer. ConocoPhillips cut 20-25% of its workforce in September after hiring Boston Consulting Group to advise on the restructuring. Lance took responsibility for the cuts, saying the company had grown less competitive as it focused on absorbing smaller rivals.
ConocoPhillips struck several multibillion-dollar deals under Lance, buying Marathon Oil in 2024 for $22.5 billion and acquiring Concho Resources for $9.7 billion in 2021, plus Permian assets from Shell for $9.5 billion. It also recently agreed to acquire a 42% stake in a joint venture in Iraq's Kirkuk oilfields and signed an agreement to re-enter Syria.
Profit and revenue beat estimates
The company posted adjusted profit of $3.24 per share for the second quarter, above average analyst estimates of $2.88 per share, according to LSEG. Revenue climbed 32.4% to $19.5 billion, beating estimates of $18.8 billion.
Production dipped nearly 6% to 2.25 million barrels of oil equivalent per day, while the average realized price climbed to $62.33 per barrel of oil equivalent, 36% higher than a year earlier. Shares rose about 1% to $116.13 at midday.
Oil price rally lifts the wider sector
Benchmark Brent crude averaged about $93.58 per barrel in the April-to-June period, up more than 32% from a year earlier amid Middle East geopolitical tensions. Rival producers Occidental Petroleum, Diamondback, Chevron and Exxon Mobil have also reported multiyear high profits tied to high oil prices from the Iran war.
ConocoPhillips shares have gained over 24% so far this year, roughly in line with Diamondback but weaker than Occidental's 37.5% rise. The company forecast third-quarter production between 2.29 million and 2.32 million barrels of oil equivalent per day.
Source: CNBC
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