MRC -- ConocoPhillips had 3Q 2023 earnings of $2.8 bn, a decrease from $4.5 bn in 3Q 2022, said the company.
Excluding special items, 3Q 2023 adjusted earnings were $2.6 bn, compared with 3Q 2022 adjusted earnings of $4.6 bn. Special items in the current quarter mainly consisted of a tax reserve reversal benefit and a gain associated with the divestiture of a Lower 48 equity investment. The operator detailed a 14% increase in its quarterly dividend due to higher-than-expected earnings for the quarter.
The decline in earnings and adjusted earnings from 3Q 2022 was primarily attributed to lower commodity prices. The company's total average realized price was $60.05/boe, 28% lower than the $83.07/boe realized in 3Q 2022. Oil and gas production for the quarter was 1.806 MMboe/d, an increase of 52,000 boe/d from 3Q 2022. After adjusting for impacts from closed acquisitions and dispositions, 3Q 2023 production increased 49,000 boe/d or 3% from the same period a year ago.
Organic growth from Lower 48 and other development programmes more than offset decline and downtime. Lower 48 delivered production of 1.083 MMboe/d, including 722,000 boe/d from the Permian basin, 232,000 boe/d from the Eagle Ford, and 111,000 boe/d from the Bakken. In Canada, Surmont Pad 267 achieved first steam and Montney's CPF2 came online, both in late Sep 2023. Turnarounds were successfully completed in Norway and Alaska. For the quarter, cash provided by operating activities (CFO) was $5.4 bn. Excluding working capital, ConocoPhillips generated CFO of $5.5 bn and received proceeds of $200 M primarily from the sale of a Lower 48 equity investment. In addition, the company funded $2.5 bn of capital expenditures and investments. ConocoPhillips further diversified its LNG portfolio by signing a 15-year throughput agreement for about 1.5 M tonnes/y of regasification at the Gate LNG Terminal in the Netherlands.
ConocoPhillips increased the quarterly ordinary dividend by 14% to $0.58/share, payable 1 Dec 2023, to stockholders of record at the close of business on 14 Nov 2023. The operator paid its 4Q 2023 variable return of cash (VROC) of $0.6/share on 16 Oct 2023, to stockholders of record at the close of business on 28 Sep 2023. Beginning in 1Q 2024, ConocoPhillips plans to pay its quarterly ordinary dividend and VROC concurrently and will announce such payments in the same quarter they will be paid. ConocoPhillips completed the purchase of the remaining 50% interest in asset in Surmont, AB, Canada in Oct 2023.
All guidance has been updated to reflect the acquisition of additional interest in Surmont but excludes any impacts from the previously announced Australia Pacific LNG (APLNG) transaction. 4Q 2023 production is expected to be 1.86-1.9 MMboe/d. Full-year production is expected to be about 1.82 MMboe/d, slightly higher than prior guidance of 1.80-1.81 MMboe/d due to the Surmont, AB acquisition. Full-year guidance for adjusted operating cost was updated to $8.6 bn versus the prior guidance of $8.3 bn, reflecting the increased working interest at Surmont, AB, increased Lower 48 non-operated activity and inflationary impacts primarily in the Lower 48.
We remind, ConocoPhillips said on Friday it was buying the 50% stake in the Surmont oil facility held by TotalEnergies' Canadian subsidiary for about USD3 B, giving it full ownership and elbowing away rival Suncor Energy. Canada's Alberta oil sands hold some of the world's largest crude reserves, which appeal to cash-flush producers looking to bolster production.