ConocoPhillips(US:COP)2025-11-06 12:34Production and Operations - ConocoPhillips reported third-quarter 2025 production of 2,399 MBOED, an increase of 482 MBOED or 25% from the same period a year ago[151]. - Total production for the nine-month period of 2025 was 2,393 MBOED, an increase of 472 MBOED or 25% from the same period a year ago[170]. - Third-quarter 2025 production increased by 83 MBOED or 4% year-over-year, while nine-month production also rose by 92 MBOED or 4%[171]. - Average production in the Lower 48 increased by 381 MBOED in Q3 2025 and 402 MBOED in the nine-month period compared to the same periods in 2024[192]. - Average consolidated production increased by 56 MBOED and 46 MBOED in the three- and nine-month periods of 2025, respectively, due to assets acquired from Marathon Oil and new wells online in Norway and Libya[208]. - Average production increased by 40 MBOED and 24 MBOED in the three- and nine-month periods of 2025, respectively, due to new wells online and absence of prior-year planned turnaround activity[202]. Financial Performance - The company generated $5.9 billion in cash provided by operating activities in the third quarter of 2025[152]. - Sales and other operating revenues for Q3 2025 reached $15,031 million, up $1,990 million (15%) from Q3 2024; for the nine-month period, revenues increased to $45,552 million, up $5,043 million (12.5%) from the previous year[174]. - Net income for Q3 2025 was $1,726 million, down from $2,059 million in Q3 2024; for the nine-month period, net income was $6,546 million, compared to $6,939 million in the same period last year[179]. - Revenues and other income for the nine months ended September 30, 2025, were $29.29 billion, with a net income of $6.55 billion[248]. Dividends and Share Repurchases - ConocoPhillips raised its ordinary dividend by 8% to $0.84 per share in November 2025[151]. - The company paid ordinary dividends of $2.34 per share in the first nine months of 2025, compared to $1.74 per share in the same period of 2024, representing a 34.5% increase[240]. - The company repurchased 42.2 million shares for a cost of $4.0 billion in the nine months ended September 30, 2025, totaling 474.8 million shares and $38.3 billion since the program's inception[241]. Capital Expenditures and Investments - Capital expenditures and investments for the first nine months of 2025 were $9.5 billion, with expected operating plan capital expenditures for 2025 between $12.3 billion and $12.6 billion[227]. - The company anticipates capital expenditures for 2025 to be between $12.3 billion and $12.6 billion, compared to $12.1 billion in 2024[244]. - Capital expenditures and investments for the first nine months of 2025 totaled $9.53 billion, compared to $8.80 billion in the same period of 2024, reflecting a 8.3% increase[243]. Asset Management - The company completed over $3 billion in asset dispositions in 2025 and is on track to meet its $5 billion target by year-end 2026[148]. - The company completed divestitures totaling approximately $2.6 billion, including the recent $1.3 billion sale of Anadarko Basin assets[194]. - Proceeds from asset sales were $1.6 billion in the first nine months of 2025, compared to $0.2 billion for the same period in 2024[229]. Liquidity and Debt - The company ended the third quarter of 2025 with cash, cash equivalents, restricted cash, and short-term investments totaling $6.6 billion[152]. - Total liquidity at September 30, 2025, was $11.8 billion, comprised of cash and cash equivalents of $5.3 billion, short-term investments of $1.0 billion, and available borrowing capacity of $5.5 billion[222]. - As of September 30, 2025, the company's debt balance was $23.5 billion, down from $24.3 billion at December 31, 2024[234]. - The company refinanced its revolving credit facility, maintaining a total principal amount of $5.5 billion, with an expiration extended to February 2030[233]. Segment Performance - The Lower 48 segment reported net income of $1,240 million in Q3 2025, slightly down from $1,241 million in Q3 2024; for the nine-month period, net income increased to $4,429 million from $3,881 million[189]. - Canada segment earnings rose to $188 million in Q3 2025 from $25 million in Q3 2024, and for the nine-month period, earnings increased to $593 million from $466 million[199]. - Europe, Middle East and North Africa segment reported sales and other operating revenues of $1,578 million and $4,918 million for the three- and nine-month periods of 2025, respectively, compared to $1,337 million and $4,090 million in 2024[203]. - Net income for the Europe, Middle East and North Africa segment was $327 million and $983 million for the three- and nine-month periods of 2025, respectively, up from $298 million and $853 million in 2024[205]. - Asia Pacific segment reported sales and other operating revenues of $515 million and $1,410 million for the three- and nine-month periods of 2025, respectively, compared to $478 million and $1,495 million in 2024[209]. - Net income for the Asia Pacific segment was $309 million and $950 million for the three- and nine-month periods of 2025, respectively, down from $455 million and $1,411 million in 2024[211]. Market Conditions and Risks - The average realized price for total production was $46.44 per BOE, a decrease of 14% compared to $54.18 per BOE in the third quarter of 2024[160]. - The average Brent crude oil price was $69.07 per barrel in the third quarter of 2025, a decrease of 14% from $80.18 per barrel in the same quarter of 2024[157]. - The company cautions that forward-looking statements are based on current expectations and may not guarantee future performance due to various risks and uncertainties[260]. - Potential impacts from volatile commodity prices could adversely affect operating results and lead to impairment charges on long-lived assets[260]. - The company faces risks related to global demand and supply changes in oil and gas, influenced by geopolitical events and health crises[260]. - There are concerns about liquidity that could impact the company's ability to repurchase shares and pay dividends[261]. - The company highlights risks associated with achieving expected reserve or production levels due to operational hazards and drilling risks[261]. - Legislative and regulatory changes addressing environmental concerns may impose significant operational or investment changes[261]. - The company acknowledges competition and consolidation in the oil and gas E&P industry, affecting access to supply and services[261]. - Challenges related to the acquisition of Marathon Oil may disrupt operations and hinder realization of anticipated cost savings[261]. - The company emphasizes the importance of reliable transportation for crude oil and natural gas, with potential disruptions posing risks[261]. - Market risks for the nine months ended September 30, 2025, remain consistent with previous disclosures in the 2024 Annual Report[262].