CONOCOPHILLIPS (COP) Earnings History

CONOCOPHILLIPS - Q4 FY2025 EarningsMissed

Filed at: Feb 5, 2026, 7:43 AM EST|Read from source

EXECUTIVE SUMMARY

ConocoPhillips reported a year of strong performance in 2025, meeting its return of capital targets and successfully integrating Marathon Oil. The company is focused on driving further cost reductions and capital efficiencies in 2026, leveraging its strong asset base to deliver significant free cash flow.

POSITIVE HIGHLIGHTS

  • •

    Generated cash provided by operating activities of $19.8 billion and cash from operations (CFO) of $19.9 billion for full-year 2025.

    positive
  • •

    Distributed $9.0 billion, or 45% of CFO, to shareholders in 2025, including $5.0 billion through share repurchases and $4.0 billion through ordinary dividends.

    positive
  • •

    Successfully integrated Marathon Oil, doubling synergy capture to over $1 billion on a run-rate basis in 2025.

    positive
  • •

    Achieved Lower 48 drilling and completion efficiency improvements of more than 15% year over year.

    positive

CONCERNS & RISKS

  • •

    Fourth-quarter 2025 earnings were $1.4 billion, or $1.17 per share, compared to $2.3 billion, or $1.90 per share, in the fourth quarter of 2024, a significant decrease.

    negative
  • •

    Full-year 2025 earnings were $8.0 billion, or $6.35 per share, compared to $9.2 billion, or $7.81 per share, in full-year 2024.

    negative
  • •

    The company's total average realized price was $42.46 per BOE in Q4 2025, 19% lower than the $52.37 per BOE realized in Q4 2024.

    negative
  • •

    Full-year 2025 proved reserves are 7.6 billion barrels of oil equivalent (BBOE), with a reserves replacement ratio (RRR) of 80%, below 100% on a reported basis.

    attention

FINANCIAL METRICS

Revenue
Quarterly
N/A
N/A
Net Income
Quarterly
$1.40B
-39.1%
Prior year: $2.30B
Annual (YTD)
$7.99B
N/A
Prior year: $9.24B
EPS (Diluted)
Quarterly
$1.17
-38.4%
Prior year: $1.90
Operating Income
Quarterly
N/A
N/A
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Net Margin
Current Quarter
7.4%
Prior Year
10.8%
YoY Change
-336 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT GUIDANCE

FY2026

capital_expenditures
12,000,000,000—12,000,000,000
Mid-point: 12,000,000,000
adjusted_operating_costs
10,200,000,000—10,200,000,000
Mid-point: 10,200,000,000
production
2,330,000—2,360,000
Mid-point: 2,345,000
"MMBOED"
depreciation_depletion_and_amortization
11,700,000,000—11,900,000,000
Mid-point: 11,800,000,000
"USD"
adjusted_corporate_and_other_segment_net_loss
-900000000.0%—-900000000.0%
Mid-point: -900000000.0%
"USD"

Q1 2026

production
2,300,000—2,340,000
Mid-point: 2,320,000
"MMBOED"

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Gain on asset sales
$228M
$0.19 per share
Q4 2025
Restructuring costs
+$57M
$0.05 per share
FY2025
Gain on asset sales
$543M
$0.43 per share
FY2025
Transaction, integration and restructuring expenses
+$356M
$0.29 per share
FY2025
Gain (loss) on debt extinguishment
+$147M
$0.12 per share
FY2025
Gain (loss) in interest rate hedge
Related to PALNG Phase 1 investment.
$28M
$0.02 per share
FY2025
Pending claims and settlements
$49M
$0.04 per share
FY2025
Impairments
+$36M
$0.03 per share
FY2025
Gain (loss) on contingent liability measurement
Related to Surmont acquisition.
$46M
$0.04 per share
Total Impact
$298M$-0.23 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

ConocoPhillips delivered another year of strong performance in 2025, achieving our CFO-based return of capital target and growing our base dividend at a top-quartile S&P 500 rate, in line with our returns-focused value proposition.

— CONOCOPHILLIPS, Q4 FY2025 2025 Earnings Call

We outperformed our initial production, capital and cost guidance; successfully integrated Marathon Oil, doubling our synergy capture; and made strong progress on our incremental cost reduction and margin enhancement efforts.

— CONOCOPHILLIPS, Q4 FY2025 2025 Earnings Call

Looking ahead, we’re focused on driving a $1 billion reduction in our capital and costs in 2026, while returning 45% of our CFO to shareholders.

— CONOCOPHILLIPS, Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Adjusted Operating Costs
10634.0M
USD
Lower 48 Production
1.4M
MBOED
Realized Price Per BOE
42.5
-18.9% YoY
Prior year: 52.4
USD
Realized Price Per BOE Fy
47.0
-14.3% YoY
Prior year: 54.8
USD
Total Company Production
2.3M
+6.3% YoY
Prior year: 2.2M
MBOED
Total Company Production Proforma Underlying
2.3M
-2.6% YoY
Prior year: 2.4M
MBOED
Total Company Production Proforma Underlying Fy
2.3M
+2.5% YoY
Prior year: 2.3M
MBOED

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.