ConocoPhillips’ first-quarter profits were $416 million, but company paid state of Alaska $464 million

ConocoPhillips Alaska has reported net income of $416 million in the first quarter of 2023. The earnings were announced Thursday, May 4, as part of the company’s release of first quarter income.

During the quarter, ConocoPhillips Alaska paid an estimated $464 million in taxes and royalties, which includes $320 million to the State of Alaska and $144 million to the federal government.

Additionally, the company invested $406 million in capital projects in the State.

“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 (tax) regime is clearly working to promote new and ongoing investment,” said Erec Isaacson, president, ConocoPhillips Alaska.

Isaacson’s statement reflects his belief that SB 21, a controversial state petroleum tax change made in 2013, is working as intended to spur new investment. “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,” he said in a statement.

Since 2007, ConocoPhillips Alaska has paid more than $43 billion in taxes and royalties to the state and federal governments. Of that amount, about $33 billion went directly to the state. In that same period, ConocoPhillips Alaska’s earnings were approximately $25 billion. Taxes paid to the North Slope Borough, the regional municipality, are included in the state total.