ConocoPhillips (NYSE: COP) announced its robust first-quarter 2025 financial results on May 8, 2025. Reporting earnings per share (EPS) of \(2.23 and adjusted EPS of \)2.09, the company exhibited notable growth compared to the first quarter of 2024, where EPS was \(2.15 and adjusted EPS was \)2.03. Net income for Q1 2025 reached \(2.8 billion, marking an increase from \)2.6 billion in the prior year quarter. This demonstrates a clear upward trajectory in profitability despite a 6% decline in realized commodity prices to \(53.34 per barrel of oil equivalent (BOE) from \)56.60 in Q1 2024.
From an operational standpoint, ConocoPhillips achieved production of 2,389 thousand barrels of oil equivalent per day (MBOED), up 487 MBOED from Q1 2024. Adjusting for acquisitions and dispositions, pro forma underlying production increased 5% year-over-year to 2,374 MBOED. Key contributions came from the Lower 48 production base which reached 1,462 MBOED, including 816 MBOED from the Permian basin, 379 MBOED from Eagle Ford and 212 MBOED from Bakken. Notably, Eagle Ford drilling performance hit record levels leveraging combined industry best practices.
Financially, the company generated \(6.1 billion in cash provided by operating activities, with a cash from operations (CFO) figure of \)5.5 billion after excluding working capital changes. Capital expenditures and investments were \(3.4 billion. Share repurchases totaled \)1.5 billion, complemented by a \(1.0 billion ordinary dividend payout. The company retired \)0.5 billion of debt during the quarter, reflecting a commitment to maintain a strong balance sheet.
Outlook guidance was positive with a maintained full-year production forecast and lowered full-year capital expenditure guidance to a range of \(12.3 billion to \)12.6 billion, down from prior guidance of \(12.9 billion. Adjusted operating cost guidance was also reduced to \)10.7 billion to \(10.9 billion from the previous range of \)10.9 billion to $11.1 billion. Second-quarter 2025 production is expected between 2.34 million to 2.38 million BOE per day.
ConocoPhillips demonstrates strong operational execution and financial discipline amid a volatile macroeconomic environment. With a gross profit margin of approximately 29.93% and an operating margin of 27.00% as of fiscal year 2024, the company maintains solid profitability metrics underpinned by a disciplined capital allocation strategy that prioritizes shareholder returns through dividends and share repurchases.
CEO Ryan Lance stated, “ConocoPhillips continued to demonstrate strong execution in the first quarter, and we reduced our full-year capital and operating cost guidance. Amid a volatile macro environment, we remain confident in the competitive advantages provided by our differentiated portfolio, strong balance sheet and disciplined capital allocation framework that prioritizes returns on and of capital to shareholders.”
Overall, ConocoPhillips’ first-quarter performance and updated guidance reinforce its position as a leading global exploration and production company with a resilient business model capable of delivering consistent financial results and shareholder value growth.
Source Document: ConocoPhillips 8-K Q1 2025 Earnings Release