ConocoPhillips CEO Ryan Lance departs as oil producer posts best profit since 2022

SEATTLE (Oil Monster):  ConocoPhillips said on Thursday that CEO Ryan Lance will retire after 14 years, with CFO Andy O'Brien set to succeed him on September 1 after the oil and gas producer posted better-than-expected quarterly ​profit.

The departure caps a tumultuous period for ConocoPhillips. The company cut 20-25% of its workforce in September after it hired management consulting firm Boston Consulting Group to advise on the ‌restructuring.

Lance took responsibility for the job cuts at the time, telling employees that the company had become less competitive as it focused on swallowing smaller rivals. ConocoPhillips struck two multibillion-dollar deals in recent years: buying smaller peer Marathon Oil in 2024 for $22.5 billion and acquiring Concho Resources for $9.7 billion in 2021. It also acquired Permian assets from oil major Shell for $9.5 billion.

Despite those challenges, the company on Thursday posted its highest net income since 2022 on the back of sturdy oil prices in recent months, which ​have also boosted other oil majors like ExxonMobil and Chevron Corp

Shares of ConocoPhillips, the largest U.S. independent oil and gas producer, were up about 0.8% at $115.83 in afternoon trading.

"This has been coming ​for a while. Ryan's done, I think, a great job ... It's a volatile environment and the financial results are good, the Marathon acquisition's mostly integrated and you've ⁠got Andy — a well-tenured executive," said Dan Pickering, chief investment officer at Pickering Energy Partners.

FOURTEEN YEARS AT THE HELM

Lance took the helm of the company in 2012 after ConocoPhillips split from refining business Phillips 66 ), ​leaving it as a pure exploration and production company. He has been with the company for over 40 years.

During his tenure, ConocoPhillips emerged as one of the largest independent oil and gas producers globally, with operations ​spanning North America, Europe, the Asia-Pacific region and the Middle East.

Lance also oversaw a series of major portfolio moves, including the sale of billions of dollars of noncore assets following the 2014 oil price collapse and massive oil price drops in 2020 after the COVID-19 pandemic crushed demand.

ConocoPhillips' stock has outperformed peers over the course of his tenure as CEO, behind only EOG Resources and ahead of larger rivals ExxonMobil and Chevron.

Courtesy: www.reuters.com