Conoco Phillips
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.86%.
Did COP Beat Earnings? Q2 2025 Results
ConocoPhillips delivered a mixed but largely resilient second quarter, posting adjusted earnings per share of $1.42 against a consensus estimate of $1.358 — a 4.57% beat — even as revenue of $14.74 billion came in just shy of the $14.89 billion analysts expected, though still 8.5% higher year-over-year. The EPS outperformance came despite a 19% decline in average realized prices to $45.77 per BOE, a headwind that was partially offset by a significant surge in production to 2,391 MBOED — up 446 MBOED year-over-year — fueled by the completed Marathon Oil acquisition. The integration is tracking well, with more than $1 billion in run-rate synergies targeted by year-end 2025, and the company has <a href="https://247wallst.com/investing/2025/11/06/conocophillips-raises-dividend-8-despite-net-income-sliding-17/">continued returning capital</a> to shareholders, distributing $2.20 billion in the quarter alone. ConocoPhillips also raised its divestiture target to $5 billion by year-end 2026 after announcing a $1.30 billion Anadarko Basin asset sale, while guiding full-year 2025 production to 2.35–2.37 MMBOED.
- Higher production volumes from Marathon Oil acquisition integration
- Lower average realized prices of $45.77 per BOE, down 19% from $56.56 per BOE in Q2 2024
- Increased depreciation, depletion and amortization costs
- Increased operating costs
- Gain on asset sales as a special item
“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.”
ConocoPhillips CEO, on the earnings call
Forward Guidance & Outlook
Q3 2025 production expected at 2.33 to 2.37 MMBOED. Full-year 2025 production guidance is 2.35 to 2.37 MMBOED, with the midpoint unchanged even after adjusting for announced and closed dispositions. Full-year effective tax rate is now expected in the mid-to-high 30% range, with a full-year deferred tax benefit of approximately $0.5 billion. More than $1 billion in Marathon Oil synergies on a run-rate basis expected by year-end 2025. Incremental cost reductions and margin enhancements of more than $1 billion anticipated on a run-rate basis by year-end 2026. Disposition target increased to $5 billion by year-end 2026. Anadarko Basin asset sale of $1.3 billion expected to close at the beginning of Q4 2025.
COP YoY Financials
Figures from SEC filings and company reports. Not investment advice.