- Reported second-quarter 2025 earnings per share of
$1.56 and adjusted earnings per share of$1.42 . - Generated cash provided by operating activities of
$3.5 billion and cash from operations (CFO) of$4.7 billion . - Declared third-quarter ordinary dividend of
$0.78 per share. - Completed the asset integration of Marathon Oil and remain on track for more than
$1 billion of synergies on a run-rate basis by year-end 2025 and over$1 billion of one-time benefits. - Announced incremental cost reductions and margin enhancements of more than
$1 billion anticipated on a run-rate basis by year-end 2026. - Signed an agreement to sell
Anadarko Basin assets for$1.3 billion , expected to close at the beginning of the fourth quarter, exceeding$2 billion disposition target ahead of schedule. - Increased disposition target to
$5 billion by year-end 2026.
“In the second quarter, we delivered strong results financially, operationally and strategically. We completed the integration of Marathon Oil and remain on track to deliver greater than
Second-quarter highlights and recent announcements
- Delivered total company and Lower 48 production of 2,391 thousand barrels of oil equivalent per day (MBOED) and 1,508 MBOED, respectively.
- Signed an agreement to divest
Anadarko Basin assets for$1.3 billion , subject to customary closing adjustments and expected to close at the beginning of the fourth quarter. - Achieved optimized level of steady-state activity in the Lower 48 following the asset integration of Marathon Oil.
- Advanced global LNG strategy by signing a regasification agreement at the Dunkerque terminal in
France and a sales agreement inAsia , both expected to begin in 2028. - Successfully completed planned turnarounds in
Norway andQatar . - Distributed
$2.2 billion to shareholders, including$1.2 billion through share repurchases and$1.0 billion through the ordinary dividend. - Ended the quarter with cash and short-term investments of
$5.7 billion and long-term investments of$1.1 billion .
Quarterly dividend
Second-quarter review
Production for the second quarter of 2025 was 2,391 MBOED, an increase of 446 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions, second-quarter 2025 production increased 72 MBOED or 3% from the same period a year ago.
Lower 48 delivered production of 1,508 MBOED, including 845 MBOED from the Permian, 408 MBOED from the Eagle Ford and 205 MBOED from the Bakken.
Earnings and adjusted earnings decreased from the second quarter of 2024. The quarter benefited from higher production volumes, which were more than offset by lower prices, increased depreciation, depletion and amortization costs, and increased operating costs. The company’s total average realized price was
For the quarter, cash provided by operating activities was
Six-month review
ConocoPhillips’ six-month 2025 earnings were
Production for the first six months of 2025 was 2,391 MBOED, an increase of 468 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions, production increased 96 MBOED or 4% from the same period a year ago.
The company’s total realized price during this period was
In the first six months of 2025, cash provided by operating activities was
Outlook
Third-quarter 2025 production is expected to be 2.33 to 2.37 million barrels of oil equivalent per day (MMBOED). Full-year production is expected to be 2.35 to 2.37 MMBOED. The midpoint of full-year production guidance remains unchanged, even after adjusting for announced and closed dispositions.
The full-year effective tax rate is now expected to be in the mid-to-high 30% range, with a full-year deferred tax benefit of approximately
--- # # # ---
About
As a leading global exploration and production company,
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements as defined under the federal securities laws. Forward-looking statements relate to future events, including, without limitation, statements regarding our future financial position, business strategy, budgets, projected revenues, costs and plans, objectives of management for future operations, the anticipated benefits of our acquisition of Marathon Oil Corporation (Marathon Oil), the anticipated impact of our acquisition of Marathon Oil on the combined company’s business and future financial and operating results and the expected amount and timing of synergies from our acquisition of Marathon Oil and other aspects of our operations or operating results. Words and phrases such as “ambition,” “anticipate,” “believe,” “budget,” “continue,” “could,” “effort,” “estimate,” “expect,” “forecast,” “goal,” “guidance,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “predict,” “projection,” “seek,” “should,” “target,” “will,” “would,” and other similar words can be used to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future performance and involve certain risks, uncertainties and other factors beyond our control. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in the forward-looking statements. Factors that could cause actual results or events to differ materially from what is presented include, but are not limited to, the following: effects of volatile commodity prices, including prolonged periods of low commodity prices, which may adversely impact our operating results and our ability to execute on our strategy and could result in recognition of impairment charges on our long-lived assets, leaseholds and nonconsolidated equity investments; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas, including changes as a result of any ongoing military conflict and the global response to such conflict, security threats on facilities and infrastructure, global health crises, the imposition or lifting of crude oil production quotas or other actions that might be imposed by
Cautionary Note to U.S. Investors – The
Use of Non-GAAP Financial Information – To supplement the presentation of the company’s financial results prepared in accordance with
The company believes that the non-GAAP measure adjusted earnings (both on an aggregate and a per-share basis) is useful to investors to help facilitate comparisons of the company’s operating performance associated with the company’s core business operations across periods on a consistent basis and with the performance and cost structures of peer companies by excluding items that do not directly relate to the company’s core business operations. Adjusted earnings is defined as earnings removing the impact of special items. Adjusted EPS is a measure of the company’s diluted net earnings per share excluding special items. The company further believes that the non-GAAP measure CFO is useful to investors to help understand changes in cash provided by operating activities excluding the timing effects associated with operating working capital changes across periods on a consistent basis and with the performance of peer companies. The company believes that the above-mentioned non-GAAP measures, when viewed in combination with the company’s results prepared in accordance with GAAP, provides a more complete understanding of the factors and trends affecting the company’s business and performance. The company’s Board of Directors and management also use these non-GAAP measures to analyze the company’s operating performance across periods when overseeing and managing the company’s business.
Each of the non-GAAP measures included in this news release and the accompanying supplemental financial information has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the company’s results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the company’s presentation of non-GAAP measures in this news release and the accompanying supplemental financial information may not be comparable to similarly titled measures disclosed by other companies, including companies in our industry. The company may also change the calculation of any of the non-GAAP measures included in this news release and the accompanying supplemental financial information from time to time in light of its then existing operations to include other adjustments that may impact its operations.
Reconciliations of each non-GAAP measure presented in this news release to the most directly comparable financial measure calculated in accordance with GAAP are included in the release.
Other Terms – This news release also contains the term pro forma underlying production. Pro forma underlying production reflects the impact of closed acquisitions and closed dispositions as of
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Table 1: Reconciliation of earnings to adjusted earnings |
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$ millions, except as indicated |
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2Q25 |
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2Q24 |
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2025 YTD |
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2024 YTD |
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Pre-tax |
Income tax |
After-tax |
Per |
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Pre-tax |
Income tax |
After-tax |
Per |
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Pre-tax |
Income tax |
After-tax |
Per |
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Pre-tax |
Income tax |
After-tax |
Per |
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Earnings |
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$ |
1,971 |
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1.56 |
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2,329 |
1.98 |
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4,820 |
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3.79 |
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4,880 |
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4.14 |
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Adjustments: |
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(Gain) loss on asset sales |
(274 |
) |
64 |
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(210 |
) |
(0.17 |
) |
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— |
— |
— |
— |
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(338 |
) |
23 |
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(315 |
) |
(0.25 |
) |
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(86 |
) |
20 |
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(66 |
) |
(0.06 |
) |
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Tax adjustments |
— |
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— |
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— |
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— |
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— |
— |
— |
— |
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— |
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— |
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— |
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— |
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— |
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(76 |
) |
(76 |
) |
(0.06 |
) |
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Transaction, integration and restructuring expenses |
58 |
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(12 |
) |
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46 |
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0.04 |
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— |
— |
— |
— |
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111 |
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(24 |
) |
87 |
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0.07 |
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— |
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— |
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— |
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— |
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(Gain) loss in interest rate hedge¹ |
(18 |
) |
4 |
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(14 |
) |
(0.01 |
) |
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— |
— |
— |
— |
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(33 |
) |
7 |
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(26 |
) |
(0.02 |
) |
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— |
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— |
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— |
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— |
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Pending claims and settlements |
— |
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— |
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— |
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— |
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— |
— |
— |
— |
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(123 |
) |
29 |
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(94 |
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(0.07 |
) |
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— |
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— |
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— |
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— |
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Adjusted earnings / (loss) |
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$ |
1,793 |
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1.42 |
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2,329 |
1.98 |
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4,472 |
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3.52 |
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4,738 |
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4.02 |
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¹Interest rate hedging (gain) loss from PALNG Phase 1 Investment. |
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The income tax effects of the special items are primarily calculated based on the statutory rate of the jurisdiction in which the discrete item resides. |
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Table 2: Reconciliation of net cash provided by operating activities to cash from operations |
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$ millions, except as indicated |
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2Q25 |
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2025 YTD |
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Net Cash Provided by Operating Activities |
$ |
3,485 |
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9,600 |
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Adjustments: |
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Net operating working capital changes |
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(1,236 |
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(588 |
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Cash from operations |
$ |
4,721 |
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10,188 |
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Table 3: Reconciliation of reported production to pro forma underlying production |
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MBOED, except as indicated |
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2Q25 |
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2Q24 |
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2025 YTD |
2024 YTD |
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Total reported |
2,391 |
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1,945 |
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2,391 |
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1,923 |
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Closed Dispositions1 |
(4 |
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(27 |
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(14 |
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(28 |
) |
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Closed Acquisitions2 |
— |
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397 |
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— |
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386 |
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Total pro forma underlying production |
2,387 |
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2,315 |
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2,377 |
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2,281 |
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1Includes production related to various Lower 48 noncore dispositions but excludes dispositions not yet closed as of |
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2Includes production related to the acquisition of Marathon Oil and additional working interest in |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250807382844/en/
281-293-1149
dennis.nuss@conocophillips.com
Investor Relations
281-293-5000
investor.relations@conocophillips.com
Source: