ConocoPhillips(COP) - 2025 Q2 - Quarterly Results

Consolidated Financial Statements This section provides a comprehensive overview of the company's financial performance and position, including income, balance sheet, and cash flow statements, along with detailed tax rates and segment earnings Consolidated Income Statement The company reported total revenues and other income of $56,953 million for the full year 2024, decreasing to $31,841 million YTD 2025 (Q1+Q2) Net income for full year 2024 was $9,245 million, with basic EPS of $7.82 For 2025 YTD, net income was $4,820 million and basic EPS was $3.80 | Metric | Full Year 2024 ($ Millions) | YTD 2025 ($ Millions) | | :----------------------------- | :-------------------------- | :---------------------- | | Total Revenues and Other Income | 56,953 | 31,841 | | Total Costs and Expenses | 43,281 | 24,358 | | Income (loss) before income taxes | 13,672 | 7,483 | | Income tax provision (benefit) | 4,427 | 2,663 | | Net Income (loss) | 9,245 | 4,820 | | Basic EPS ($) | 7.82 | 3.80 | | Diluted EPS ($) | 7.81 | 3.79 | Effective Income Tax Rates The consolidated effective income tax rate for the full year 2024 was 32.4%, increasing to 35.6% for 2025 YTD Regional rates varied significantly, with Europe, Middle East and North Africa having the highest rates (70.6% in 2024, 69.8% in 2025 YTD) and Asia Pacific having lower rates (10.9% in 2024, 17.0% in 2025 YTD) | Segment | Full Year 2024 (%) | YTD 2025 (%) | | :---------------------------------- | :------------- | :--------- | | Alaska | 26.6 | 28.7 | | Lower 48 | 22.0 | 20.7 | | Canada | 24.2 | 24.5 | | Europe, Middle East and North Africa | 70.6 | 69.8 | | Asia Pacific | 10.9 | 17.0 | | Other International | 42.0 | 11.4 | | Corporate and Other | 47.9 | 19.5 | | Consolidated | 32.4 | 35.6 | Earnings by Segment Consolidated net income for full year 2024 was $9,245 million, with Lower 48 being the largest contributor at $5,175 million For 2025 YTD, consolidated net income was $4,820 million, with Lower 48 contributing $3,189 million Special items had a net positive impact of $21 million in 2024 and $348 million in 2025 YTD | Segment | Net Income (Full Year 2024, $ Millions) | Net Income (YTD 2025, $ Millions) | Special Items (Full Year 2024, $ Millions) | Special Items (YTD 2025, $ Millions) | Adjusted Earnings (Full Year 2024, $ Millions) | Adjusted Earnings (YTD 2025, $ Millions) | | :---------------------------------- | :-------------------------------------- | :---------------------------------- | :--------------------------------------- | :----------------------------------- | :------------------------------------------- | :--------------------------------------- | | Alaska | 1,326 | 462 | — | 58 | 1,326 | 404 | | Lower 48 | 5,175 | 3,189 | (4) | 300 | 5,179 | 2,889 | | Canada | 712 | 405 | — | — | 712 | 405 | | Europe, Middle East and North Africa | 1,189 | 656 | — | — | 1,189 | 656 | | Asia Pacific | 1,724 | 641 | 76 | — | 1,648 | 641 | | Other International | (1) | 3 | — | — | (1) | 3 | | Corporate and Other | (880) | (536) | (51) | (10) | (829) | (526) | | Consolidated | 9,245 | 4,820 | 21 | 348 | 9,224 | 4,472 | Adjusted Effective Income Tax Rates Presents effective income tax rates adjusted for special items across various segments and consolidated The consolidated adjusted effective income tax rate for the full year 2024 was 35.5%, increasing to 37.0% for 2025 YTD Regional variations persist, with Europe, Middle East and North Africa showing the highest adjusted rates | Segment | Full Year 2024 (%) | YTD 2025 (%) | | :---------------------------------- | :------------- | :--------- | | Alaska | 26.6 | 29.3 | | Lower 48 | 22.0 | 21.9 | | Canada | 24.2 | 24.5 | | Europe, Middle East and North Africa | 70.6 | 69.8 | | Asia Pacific | 14.8 | 17.0 | | Other International | 42.0 | 11.4 | | Corporate and Other | 22.3 | 19.5 | | Consolidated | 35.5 | 37.0 | Detailed Special Items Provides a detailed reconciliation of special items affecting earnings, categorized by segment and type (e.g., claims, restructuring, asset sales, impairments) Special items for 2025 YTD totaled $348 million, primarily driven by gains on asset sales in Lower 48 ($338 million) and pending claims/settlements in Alaska ($77 million) | Segment | Item | Full Year 2024 ($ Millions) | YTD 2025 ($ Millions) | | :------------------ | :-------------------------------------- | :-------------------------- | :---------------------- | | Alaska | Pending claims and settlements | — | 77 | | Lower 48 | Gain (loss) on asset sales | 86 | 338 | | Lower 48 | Transaction, integration and restructuring expenses | (43) | (20) | | Corporate and Other | Transaction, integration and restructuring expenses | (499) | (91) | | Corporate and Other | Gain (loss) on interest rate hedge | 35 | 33 | | Total Company | Consolidated | 21 | 348 | - A tax adjustment in 1Q24 related to Malaysia deepwater investment tax incentive[5] - Interest rate hedging gain (loss) from PALNG Phase 1 Investment[5] - Tax adjustment related to the Marathon Oil acquisition and a deferred tax adjustment related to finalization of federal income tax regulations related to foreign currency in 4Q24[5] Consolidated Balance Sheet Presents the company's financial position, including assets, liabilities, and equity, at various quarter-ends for 2024 and 2025 As of June 30, 2025 (2nd Qtr), total assets were $122,599 million, total liabilities were $57,027 million, and total equity was $65,572 million Compared to full year 2024, total assets decreased slightly from $122,780 million, while total equity increased from $64,796 million | Metric | Full Year 2024 ($ Millions) | 2nd Qtr 2025 ($ Millions) | | :---------------------------------- | :-------------------------- | :------------------------ | | Total Current Assets | 15,647 | 13,939 | | Total Assets | 122,780 | 122,599 | | Total Current Liabilities | 12,124 | 10,986 | | Long-term debt | 23,289 | 23,115 | | Total Liabilities | 57,984 | 57,027 | | Total Equity | 64,796 | 65,572 | Cash Flow Information Details cash flows from operating, investing, and financing activities, along with the impact of exchange rate changes on cash and cash equivalents For the full year 2024, net cash provided by operating activities was $20,124 million, while net cash used in investing activities was $(11,150) million and net cash used in financing activities was $(8,835) million For 2025 YTD, operating cash flow was $9,600 million, investing cash flow was $(4,807) million, and financing cash flow was $(5,620) million | Metric | Full Year 2024 ($ Millions) | YTD 2025 ($ Millions) | | :---------------------------------- | :-------------------------- | :---------------------- | | Net Cash Provided by Operating Activities | 20,124 | 9,600 | | Net Cash Used in Investing Activities | (11,150) | (4,807) | | Net Cash Used in Financing Activities | (8,835) | (5,620) | | Net Change in Cash, Cash Equivalents and Restricted Cash | 6 | (679) | | Cash, Cash Equivalents and Restricted Cash at End of Period | 5,905 | 5,226 | Capital Expenditures and Investments Breakdown of capital expenditures and investments by geographical segment for 2024 and 2025 YTD Total capital expenditures and investments for the full year 2024 amounted to $12,118 million, with Lower 48 ($6,510 million) and Alaska ($3,194 million) being the largest recipients For 2025 YTD, total capital expenditures were $6,664 million, with Lower 48 ($3,518 million) and Alaska ($2,032 million) continuing to dominate | Segment | Full Year 2024 ($ Millions) | YTD 2025 ($ Millions) | | :---------------------------------- | :-------------------------- | :---------------------- | | Alaska | 3,194 | 2,032 | | Lower 48 | 6,510 | 3,518 | | Canada | 551 | 309 | | Europe, Middle East and North Africa | 1,021 | 630 | | Asia Pacific | 370 | 118 | | Corporate and Other | 472 | 57 | | Total Capital Expenditures and Investments | 12,118 | 6,664 | Operational Performance This section analyzes the company's production volumes, including crude oil and natural gas, alongside industry and realized prices, and details exploration and depreciation, depletion, and amortization expenses Production Volumes Presents total production volumes in MBOED and detailed breakdowns by crude oil, NGL, bitumen, and natural gas, for both consolidated operations and equity affiliates, across various regions Total production for the full year 2024 was 1,987 MBOED, increasing to 2,391 MBOED for 2025 YTD Crude oil production from consolidated operations was 969 MBD in 2024, rising to 1,149 MBD in 2025 YTD | Metric | Full Year 2024 | YTD 2025 | | :---------------------------------- | :------------- | :--------- | | Total Production (MBOED) | 1,987 | 2,391 | | Crude Oil (MBD) - Consolidated operations | 969 | 1,149 | | Crude Oil (MBD) - Equity affiliates | 13 | 12 | | NGL (MBD) - Consolidated operations | 304 | 406 | | Bitumen (MBD) - Consolidated operations | 122 | 144 | | Natural Gas (MMCFD) - Consolidated operations | 2,200 | 2,848 | | Natural Gas (MMCFD) - Equity affiliates | 1,233 | 1,190 | - Lower 48 and Alaska are significant contributors to crude oil production, with Lower 48 consolidated operations producing 602 MBD in 2024 and 757 MBD in 2025 YTD, and Alaska producing 173 MBD in 2024 and 183 MBD in 2025 YTD[10] Industry and Realized Prices Provides key industry benchmark prices for crude oil (WTI, Brent, JCC) and natural gas (Henry Hub), alongside the company's average realized prices for crude oil, NGL, bitumen, and natural gas, broken down by consolidated operations and equity affiliates Industry crude oil prices generally decreased from 2024 to 2025 YTD, while Henry Hub natural gas prices increased The company's average realized price for total production decreased from $54.83/BOE in 2024 to $49.54/BOE in 2025 YTD | Metric | Full Year 2024 | YTD 2025 | | :---------------------------------- | :------------- | :--------- | | WTI Crude Oil ($/BBL) | 75.72 | 67.58 | | Brent Dated Crude Oil ($/BBL) | 80.76 | 71.74 | | Henry Hub Natural Gas ($/MMBTU) | 2.27 | 3.55 | | Average Realized Price Total ($/BOE) | 54.83 | 49.54 | | Average Realized Crude Oil ($/BBL) - Consolidated | 76.74 | 67.92 | | Average Realized Natural Gas ($/MCF) - Consolidated | 2.61 | 3.88 | - Average realized natural gas prices for consolidated operations significantly increased from $2.61/MCF in 2024 to $3.88/MCF in 2025 YTD[8][11] Exploration and DD&A Expenses Details exploration expenses, including dry hole costs and leasehold impairments, and depreciation, depletion, and amortization (DD&A) expenses by segment Total exploration expenses for the full year 2024 were $355 million, increasing to $198 million for 2025 YTD Total DD&A expenses were $9,599 million in 2024, with Lower 48 accounting for the largest portion ($6,442 million) | Metric | Full Year 2024 ($ Millions) | YTD 2025 ($ Millions) | | :---------------------------------- | :-------------------------- | :---------------------- | | Total Exploration Expenses | 355 | 198 | | Dry holes (noncash) | 40 | 49 | | Leasehold impairment (noncash) | 6 | 36 | | Total DD&A | 9,599 | 5,584 | | DD&A - Lower 48 | 6,442 | 3,907 | | DD&A - Alaska | 1,299 | 716 | Corporate and Other Financials This section outlines the financial performance of corporate and other segments, including net interest expense and G&A, along with key debt and equity metrics Corporate and Other Earnings/Loss Provides a detailed breakdown of earnings and losses attributable to corporate and other segments, including net interest expense, G&A, and technology investments The Corporate and Other segment reported a net loss of $(880) million for the full year 2024, and $(536) million for 2025 YTD, primarily driven by net interest expense and corporate G&A expenses | Metric | Full Year 2024 ($ Millions) | YTD 2025 ($ Millions) | | :---------------------------------- | :-------------------------- | :---------------------- | | Corporate and Other Earnings (Loss) | (880) | (536) | | Net interest expense (net of tax) | (379) | (250) | | Corporate G&A expenses (net of tax) | (716) | (257) | | Technology* (net of tax) | (137) | (40) | - Technology investments include new technologies or businesses outside the normal scope of operations and licensing revenues[12] Debt and Equity Presents key debt and equity metrics, including total debt, debt-to-capital ratio, and total equity Total debt increased from $18,417 million in Q1 2024 to $24,324 million for the full year 2024, then slightly decreased to $23,529 million by Q2 2025 The debt-to-capital ratio remained stable at 27% for 2024 and 26% for 2025 YTD Total equity increased from $49,325 million in Q1 2024 to $64,796 million for the full year 2024, and further to $65,572 million by Q2 2025 | Metric | Full Year 2024 ($ Millions) | 2nd Qtr 2025 ($ Millions) | | :---------------------------------- | :-------------------------- | :------------------------ | | Total debt | 24,324 | 23,529 | | Debt-to-capital ratio | 27 % | 26 % | | Total Equity | 64,796 | 65,572 | Reference Information This section provides a comprehensive list of commonly used abbreviations and definitions for units of measurement within the report Commonly Used Abbreviations This section provides a list of abbreviations used in the financial report, such as DD&A for Depreciation, Depletion and Amortization, G&A for General and Administrative, and WTI for West Texas Intermediate Units of Measurement This section defines the units of measurement used for various operational metrics in the report, including BBL for Barrel, MBOED for Thousand of Barrels of Oil Equivalent per Day, and MMCFD for Million Cubic Feet per Day