ConocoPhillips posts higher Q1 earnings, cuts cost guidance

HOUSTON - ConocoPhillips (NYSE: COP), a $110.88 billion market cap energy giant with a "GOOD" financial health rating according to InvestingPro, on Thursday reported a rise in first-quarter 2025 earnings to $2.8 billion, or $2.23 per share, from $2.6 billion, or $2.15 per share, in the same period last year. The company’s current valuation suggests it may be undervalued based on InvestingPro’s Fair Value analysis. Adjusted for special items, earnings were $2.7 billion, or $2.09 per share, up from $2.4 billion, or $2.03 per share, in the first quarter of 2024. The company attributed the increase to higher production volumes, despite lower realized prices for oil and gas.

Production for the quarter reached 2,389 thousand barrels of oil equivalent per day (MBOED), a significant increase from the previous year, driven by strong performance in the Lower 48 states, including notable contributions from the Permian, Eagle Ford, and Bakken regions.

In the face of a volatile market environment, ConocoPhillips announced a reduction in its full-year capital expenditure guidance to a range of $12.3 to $12.6 billion, down from the previous estimate of approximately $12.9 billion. The company also lowered its full-year adjusted operating cost guidance to between $10.7 and $10.9 billion, from an earlier range of $10.9 to $11.1 billion.

ConocoPhillips declared a second-quarter ordinary dividend of $0.78 per share, payable on June 2, 2025, to shareholders of record as of May 19, 2025. The company currently offers a 3.56% dividend yield and has maintained dividend payments for 55 consecutive years, demonstrating strong commitment to shareholder returns. InvestingPro subscribers can access 8 additional key insights about the company’s financial strength and growth potential.

The company’s financial position remains robust, with $7.5 billion in cash and short-term investments and $1.0 billion in long-term investments at the end of the quarter. ConocoPhillips also completed $1.3 billion in noncore Lower 48 asset sales, including $0.6 billion during the quarter and an additional $0.7 billion in May with the close of Ursa and associated assets.

During the quarter, ConocoPhillips distributed $2.5 billion to shareholders, including $1.5 billion through share repurchases and $1.0 billion through dividends. Additionally, the company retired $0.5 billion of debt at maturity.

Looking ahead to the second quarter of 2025, the company expects production to be between 2.34 and 2.38 million barrels of oil equivalent per day (MMBOED).

This report is based on a press release statement from ConocoPhillips.

In other recent news, ConocoPhillips reported strong financial results for Q4 2024, with earnings per share of $1.98, surpassing the forecasted $1.79, and revenue reaching $14.7 billion, exceeding the anticipated $14.27 billion. Despite these positive figures, the company’s stock experienced a decline in trading sessions. ConocoPhillips is also considering selling its oil and gas properties in Oklahoma, including operations in the Anadarko basin, which could yield a sale price of over $1 billion. This potential sale would aid the company in reaching its goal of generating $2 billion through the sale of non-core assets. UBS analysts have maintained a Buy rating on ConocoPhillips, with a price target of $137, citing the company’s strong position in the market and projected cash flow growth. Additionally, JPMorgan reiterated its Overweight rating and $127 price target, highlighting ConocoPhillips’ strong fourth-quarter performance and its $10 billion capital return commitment for 2025. The company continues to focus on strategic initiatives and financial planning to ensure long-term growth and stability.

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