In 3rd quarter ConocoPhillips AK incurs $341M in taxes, royalties

Kay Cashman

Petroleum News

On Oct. 31 in connection with ConocoPhillips' quarterly 2024 earnings presentation, ConocoPhillips Alaska reported a net income of $267 million in the third quarter of 2024.

During the quarter, ConocoPhillips Alaska incurred an estimated $341 million in taxes and royalties, which includes $251 million to the state of Alaska and $90 million to the federal government.

Additionally, in the third quarter, ConocoPhillips Alaska invested $691 million in capital.

"Continued progress on projects like Willow and Nuna, along with our agreement to acquire certain Chevron oil and gas assets in Alaska, underscores our commitment to Alaska and demonstrates the effectiveness of the stable fiscal regime," said Erec Isaacson, president of ConocoPhillips Alaska.

"Year to date, we've invested more than $2 billion in Alaska projects, which surpasses our total 2023 capital expenditures. This investment creates jobs and promotes economic opportunities for Alaskans," Isaacson added.

Since 2007, the company has incurred approximately $45 billion in taxes and royalties to the state of Alaska and the federal government. Of that amount, about $35 billion went directly to the state. In that same period, ConocoPhillips Alaska's earnings were over $27 billion.

In the Q&A session for ConocoPhillips, SVP Kirk Johnson, global operations, said this about Alaska operations: "Most importantly, the team is really sharpening the pencil right now on preparing for our 2025 winter construction season. ... And we do recognize that the scope here next year is going to be larger than the past winter season that was really quite successful for us."

"In 2025, we'll resume those critical activities that ... you have to do from ice roads. And so that consists of gravel placement for roads and paths. We'll resume pipeline installations, and then we'll also start to begin placing camps out at Willow."

"And then lastly, and very importantly, again, now that we have those operation center modules -- they're up on the North Slope of Alaska. Once we have ice roads constructed, we'll begin moving those modules into the Willow development area."

--KAY CASHMAN