ConocoPhillips Alaska reported net income of $416 million in the first quarter of 2023.
During the quarter, ConocoPhillips Alaska incurred an estimated $464 million in taxes and royalty payments due. That included $320 million to the State of Alaska and $144 million to the federal government.
Additionally, in the first quarter of 2023, ConocoPhillips Alaska reported it invested $406 million in capital in the Alaska.
“ConocoPhillips Alaska spent $1.1 billion in 2022, and in 2023, is projected to increase capital spend as the Willow project has commenced construction. Alaska’s existing fiscal regime (SB21) is clearly working to promote new and ongoing investment,” said Erec Isaacson, president, ConocoPhillips Alaska.
“We remain committed to investing in projects on the North Slope that will deliver new barrels and contribute significantly to the State’s economy through job growth and revenue generation.”
Since 2007, ConocoPhillips Alaska has incurred more than $43 billion in taxes and royalties to the State of Alaska and the federal government.
Of that amount, about $33 billion went directly to the state. In that same period, ConocoPhillips Alaska’s earnings were approximately $25 billion.
So the state is getting their fair share. Let’s tax them until they leave and the state budget grows what a plan. Tax the big bad oil companies.
So.
Conoco Phillips has provided a net income level of 416 million dollars within the first of this year’s quarter, whilst incurring a tax payment and royalties payment of 464 million dollars, whilst at the same time, investing 406 million dollars unto the expansion of its oil exploration and extraction.
And yet, at even said level of production versus taxation, our legislators demand more, which shall surely lead unto a lessening not of only production, but of exploration, and the beneficial aspects unto the populace at large.
This is rather disingenuous weak biased reporting.. there are several numbers missing (including how much we Alaskans font see because the state gives them money back) but I don’t expect anything less, or more for that matter, from such a poorly disguised mouthpiece
Don’t forget production and employment were cut when the oil industry got this sweetheart deal from legislators choosing outside interests over those of Alaska and Alaskans
Typical partisan BS, Mav. When tax liability exceeds quarter earnings, why would anybody agree to assume the risk if business operations? Oil companies, like any corporation, need stability to operate. Have you ever owned and operated an ice-cream stand? Or, are you one of those miscreant government employees who can’t stand to see a smaller paycheck because the government costs exceeded what couldn’t be recovered through more tax burden on the producers?
For this writer, I’ll present the big picture here in as simple a way as possible – just to make sure she understands how things really work.
Suppose you owned a big empty lot next to your house. That lot is there, but you never use it. And you never give it much thought one way or another.
One day a couple of professional businesspeople dressed in expensive suits knock on your door. They make you an offer. They want to use your empty lot for their new local business. You don’t have to a thing. They will be doing all the work. All you need to do is let them use your empty lot for their business. And they will give you half of the profits their business makes each year.
And BTW, everyone knows these guys and their business. And everywhere they have one of their businesses, they always make lots of money.
Pray tell how much we’re going to have to pay them back due to SB21.
Nothing like the private energy industry getting raped by the government for taxes that will be used to chase them out of existence.
Joe Biden’s climate action at work. Where we all go when our homes freeze up in late September? Pray for Trump’s return.
The goose has also provided, donations, employment and economic benefits to the state that are not considered on this spreadsheet, but each citizen must face the reality that our state budget is overblown, any further spending must be essential, and we can’t siphon the oil out of the ground or market it without oil companies, the source of unlimited wealth. Reality Check – the current U.S. president has tanked the economy spiking inflation and our economy is crashing and crumbling with every business that fails. The state government is oblivious to the economic disaster on the horizon, the golden goose has been infected with the Biden virus, and our government is threatening to tax us to cover the losses. Losses we can’t cover or control, and the current scheme to sell carbon credits only works if someone is willing to purchase, and please pay attention- those folks will need food instead!
Federal government is not why Alaskans are suffering a weak economy here. It is due to those pretending to represent us and instead protecting outside interests and their profits over the needs of Alaska and Alaskans.. but if you wanna drink the kool-aid. Nobody will stop you. Just want you to be better informed than miss downing can provide
So they owed more than they made.
And the state wants more.
Let’s just cut to the chase and shut down the slope, tax everyone and everything possible to the highest level possible, and declare the legislature the ruling Junta.
It’s the short cut to where we’re headed.
It’s the short cut to where we are heading because we are goving away the oil. These numbers are disingenuous and ignore the money not taken or given back underr the sweetheart deal. You want to see alaska go forward better. Make the industry work as our partners not allow them to leverage us as a cash cow
It won’t work if they get pissed and leave. Which they have steadily been doing.
Be careful what you ask for. You’ll likely get it.
Most people don’t understand that oil funds governments of all levels far beyond any other industry. Taxes on exploration, production, shipping, income, property, sales, etc., etc., etc. Look at gasoline, the oil it comes from is taxed before it’s even produced then it’s taxed by the feds for roads, and states for roads, and then counties, boroughs, municipalities, and cities when it’s sold. There’s so many ataxes baked into gas that it is the only product that you buy that has all the taxes included in the actual price because if mos5 people knew how much they were paying in taxes for a gallon of gas they’d be outraged!
It’s always telling when some ill-informed person claims that government is subsidizing the oil industry, when it is the oil industry that subsidizes government.
Is that why all of the oil company majors recorded their highest profits ever in the last quarter? The subsidies for ethanol are crazier yet, does it make sense to spend $8 to make $9 of fuel that has 85% of gasoline BTU’s?
No, that was probably due to the horrible government policies of the current administration along with the inflation that those policies generated. The ethanol subsidies are insane, not as bad as the “green energy” subsidies, but insane nonetheless.
If oil companies are having record profits, maybe you can explain why this is horrible goverment? Why did all of these Red State representatives keep stuff like battery plants in their debt ceiling demands? The seeds of inflation go back to the unneccessary tax cuts in 2017 that supercharged an economy tnat was already growing
Inflation makes money worth less, which means you need more of it to equal the same as what you had before the inflation. Part of the reason, as you claim, oil companies are seeing record profits is because due to inflation they are necessarily getting more dollars than they used to get for the same product. Any business that is selling any commodity before inflation and after inflation will be bringing in more money because the inherent value of that money has gone down.
Oh and blaming Trump for inflation is hilarious. It definitely has nothing to due with the trillions of make believe dollars that the current administration dumped into the economy since taking over…
Liars figure, and figures lie.
Come on!!! Let’s just kill that goose who lays the golden eggs!!!! Think how many of those golden eggs we’ll have!! ALL OF EM!!!!!
The oil industry is far from being the goose laying a golden egg.. The golden egg is Alaska’s oil in the ground. The industry is buying it at cutrate prices and killing our economy which our current leadership then allows to undermine key elements of services to protect and provide for our future
Buying it? They are the ones discovering it, and bringing it up from the ground! They are NOT buying it.
Do you all not understand when Net Income is calculated?
It’s after expenses, including exploration.
And after payroll, suppliers, and subcontractors are paid.
After executives are paid. After executive bonuses are paid. After executive stock options are given.
It’s after taxes are paid. Federal, state, borough. After.
Net.
After everything was paid, they walked away with over $400,000,000.
In three months.
If you want any relevance to the $400,000,000 net profit, tell us how much their gross revenue was in those same three months.
Wrong, This article proves they lost 48 million because of sleepy joe and democrat greed. They will leave and we will be left with nothing. If we want to keep funding our state we need to cut our taxes on them by AT LEAST 50%. what other industry is taxed at half their profits? The answer is none. We need to vote R next election or the state is doomed.
1. Please explain your understanding of Net Profit. In your world, when is tax paid; before or after Net Profit?
2. Please point to the exact sentence(s) in this article that even suggests that ConocoPhillips lost money.
From Alaska Business:
“The first-quarter earnings statement ended, in typical fashion, by noting that ConocoPhillips Alaska has incurred more than $43 billion in taxes and royalties to the State of Alaska and the federal government since 2007. Of that amount, about $33 billion went directly to the state. In that same period, ConocoPhillips Alaska’s earnings were approximately $25 billion.”
Do you really think that CP made $25 billion profit and paid $43 billion in taxes out of that profit?
I really think they made $416 million and paid $464 million in taxes. Your reading comprehension is not so good maybe. Liberal education is worse than I thought.
My reading comprehension?
Answer my questions 1 and 2.
Two words: depreciation allowance. Check the free cash flow.
nicely stated. also didn’t cut their dividend. oil companies increasing share buy backs and dividends. it’s a shell game folks. as the “rubes” we’re not going to understand, we’re the patsy’s.
what’s the old saying? if you’re in a poker game and can’t figure out who the sucker is? michigans dominant industry was cars. they didn’t go out of business, they fleeced michigan and the unions, moved south to rube states with “right to work” rules.
CEO’s are playing a new game, new rules. two stock class system.
? Sad
With that sort of cost benefit bottom line, it is only a matter of time before Conoco Phillips leaves Alaska.
And the clown show in the Alaska Senate majority thinks they aren’t paying enough. When the producers leave, there are only two replacements for the tax money: Permanent Fund and Alaskan citizens (you and I). Let that set in for a while. Cheeers –
Net income is after taxes are paid. Alaska has the lowest State tax rates in the US. When Willow spending starts, because it is on Federal land, Alaska will get $0 income for quite a few years because of massive tax write offs and lower royalties
Are you counting royalty fees in your taxes or do you just dismiss them entirely?
I don’t understand big oil company taxes. But in 2022, I am taxed on the money I use for investment. The investment is for my benefit. It’s not a loss. It’s income that I am spending on what I want to better my future. Not gonna lie. It hurts like hell because of my tax bill.
Maybe it’s kinda the same thing with Conoco.
Anyone remember reading “Atlas Shrugged” (by: Ayn Rand)? It’s analogous to what’s currently happening in Alaska, as well as, our Nation. Maybe(?), it time to re-read that novel, understand the potential learning lessons, and start implementing measures to avoid the coming crash.
The Feds want to tax Willow at the highest rate possible as well.
While I commend the excellent and thoughough analysis by my fellow netizens, I feel the point that should be highlighted in this article was blurred.
This oil is the property of the citizens of Alaska and the greater US. It would seem only wise that a company pay its taxes. Should that company fail to operate at a profit. Let it fail and another company will find better methods of operation. Showing that you hate government taxation would be a different and legitimate discussion. But for this article. I think this focus on numbers with little context makes it hard to see why we care about the taxation of this company.
For anyone lamenting the sad fate of Big Oil and the dismal prediction that they’ll be taxed out of the state let Big Oil itself reassure you:
“ ConocoPhillips Alaska spent $1.1 billion in 2022, and in 2023, is projected to increase capital spend as the Willow project has commenced construction. Alaska’s existing fiscal regime (SB21) is clearly working to promote new and ongoing investment,” said Erec Isaacson, president, ConocoPhillips Alaska.
“We remain committed to investing in projects on the North Slope that will deliver new barrels and contribute significantly to the State’s economy through job growth and revenue generation.”
And net income is net of all expenses including tax so Big Oil walked away with a handsome profit.
Wow, this thread became a Marxist echo chamber rather quickly. I have no idea why we bother discussing anything with these lunatics, there is no middle ground left.
$33 billion went directly to the state. $25 billion went to ConocoPhillips.
I think we need a new definition of “fair share”.
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