ConocoPhillips Earnings Summary
In the second quarter of 2025, ConocoPhillips reported financial results reflecting solid performance across its operations. The company announced earnings of $2.0 billion, translating into earnings per share (EPS) of $1.56. While the reported earnings were slightly lower than the $2.3 billion or $1.98 per share recorded in the same quarter of 2024, the company successfully delivered on its strategic initiatives. The adjusted earnings, excluding special items, amounted to $1.8 billion or $1.42 per share, again slightly down from $2.3 billion or $1.98 per share in the prior year period.
Financial Results Table
The following table provides a comparative analysis of ConocoPhillips' key financial metrics over the past quarters and years:
| Metric | Q2 2025 | Q2 2024 | YoY Change |
|---|---|---|---|
| Earnings per Share (EPS) | $1.56 | $1.98 | -21.2% |
| Adjusted Earnings per Share | $1.42 | $1.98 | -28.3% |
| Net Income (in billions) | $2.0 | $2.3 | -13.0% |
| Adjusted Net Income (in billions) | $1.8 | $2.3 | -21.7% |
Revenue Breakdown and Segment Analysis
ConocoPhillips' production volume was a key component of its revenue stream with notable performance in its Lower 48 operations.
Production and Realized Prices
The company's total production for Q2 2025 was 2,391 thousand barrels of oil equivalent per day (MBOED), up from 1,945 MBOED in Q2 2024. This growth was bolstered by the integration of Marathon Oil, contributing significantly to the Lower 48 production, which reached 1,508 MBOED. Specific contributions include the Permian at 845 MBOED, Eagle Ford at 408 MBOED, and Bakken at 205 MBOED. However, the average realized price per barrel of oil equivalent (BOE) was $45.77, which marked a decline from $56.56 in the same quarter last year, impacting revenue growth.
| Segment | Q2 2025 Production (MBOED) | Q2 2024 Production (MBOED) | YoY Change |
|---|---|---|---|
| Total Company | 2,391 | 1,945 | +446 MBOED |
| Lower 48 | 1,508 | N/A | N/A |
| Permian Basin | 845 | N/A | N/A |
| Eagle Ford | 408 | N/A | N/A |
| Bakken | 205 | N/A | N/A |
Key Developments
The second quarter was marked by pivotal achievements for ConocoPhillips. A strategic highlight was the successful integration of Marathon Oil assets, which is expected to generate synergies of more than $1 billion by the end of 2025. Additionally, the company made significant strides in its asset optimization strategy with the signing of an agreement to divest Anadarko Basin assets for $1.3 billion, effectively achieving a portion of its expanded $5 billion disposition target by year-end 2026.
Further advancements included enhancements in the global LNG strategy, as evidenced by commitments at the Dunkerque terminal in France and in Asia. Operational achievements also included successful turnarounds in Norway and Qatar, underscoring the company's commitment to maintaining strong operational efficiency.
Executive Commentary
Ryan Lance, ConocoPhillips' Chairman and CEO, reflected positively on the company's progress:
"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 $1 billion in synergies and more than $1 billion of one-time benefits... We are leveraging our scale and technologies to drive a further $1 billion-plus in company-wide cost reductions and margin enhancements by the end of 2026. These efforts strengthen our free cash flow generation, enabling us to continue delivering strong returns on and of capital."
Dividends and Share Repurchases
ConocoPhillips remains committed to shareholder return, having distributed a total of $2.2 billion to shareholders in Q2 2025. This distribution comprised $1.0 billion in ordinary dividends and $1.2 billion in share repurchases. The company declared a third-quarter ordinary dividend of $0.78 per share, continuing its tradition of returning capital to its shareholders.
ConocoPhillips Stock Forecast
Looking ahead, the stock price projections for ConocoPhillips reflect both growth potential and industry uncertainties. Based on the current financial performance, operational accomplishments, and the market environment, the company's stock could potentially reach a high of $110 per share, aligning with strategic synergies and efficient asset management. Conversely, any continued pressures from lower realized prices or broader industry volatility could see the stock at a low of $85 per share.
These projections are informed by the company's robust free cash flow, ongoing synergies from the Marathon Oil acquisition, strategic asset divestitures, and the potential for incremental cost reductions and margin enhancements in the coming years.
Overall, ConocoPhillips presents a growth-oriented investment case, supported by sound financial management and strategic initiatives aimed at optimizing operational efficiencies and delivering shareholder value.
