ConocoPhillips plans year-over-year production increase, $12.9-billion capex

ConocoPhillips’s earnings were down year-over-year, but increased production. For 2025, the company expects production to grow even more on capital expenditures of about $12.9 billion.
Feb. 6, 2025
3 min read

ConocoPhillips’s earnings were down year-over-year, but increased production. For 2025, the company expects production to grow even more on capital expenditures of about $12.9 billion. 
The operator expects to produce 2.34-2.38 MMboe/d in 2025, which includes impacts of 20,000 boe/d from planned turnarounds. First-quarter 2025 production is expected to be 2.34-2.38 MMboe/d.

The operator had fourth-quarter 2024 earnings of $2.3 billion, compared with fourth-quarter 2023 earnings of $3.0 billion. Excluding special items, fourth-quarter 2024 adjusted earnings were $2.4 billion, compared with fourth-quarter 2023 adjusted earnings of $2.9 billion. 

Slide from ConocoPhillips investor presentation, May 29, 2024.
Conoco Phillips And Marathon Oil Pro Forma Assets

Special items for the current quarter were primarily due to transaction and integration expenses largely offset by a tax benefit, both resulting from the acquisition of Marathon Oil, and debt transaction-related expenses.

Full-year 2024 earnings were $9.2 billion, compared with full-year 2023 earnings of $11.0 billion. Excluding special items, full-year 2024 adjusted earnings were $9.2 billion, compared with full-year 2023 adjusted earnings of $10.6 billion.

Fourth-quarter review

Production for fourth-quarter 2024 was 2.1 MMboe/d, an increase of 281,000 boe/d from the same period a year ago. After adjusting for impacts from closed acquisitions and dispositions, fourth-quarter 2024 production increased 139,000 boe/d or 6% from the same period a year ago.

Lower 48 delivered production of 1.3 MMboe/d, including 833,000 boe/d from the Permian basin, 296,000 boe/d from the Eagle Ford, and 151,000 boe/d from the Bakken.

Earnings decreased from fourth-quarter 2023 as higher volumes were more than offset by nonrecurring acquisition-related transaction and integration expenses, lower prices and higher depreciation, depletion and amortization (DD&A). Adjusted earnings decreased as higher volumes were more than offset by lower prices, higher DD&A and increased operating costs.

For the fourth quarter, cash provided by operating activities was about $4.5 billion. Excluding a $1.0 billion change in working capital, ConocoPhillips generated cash flow from operations (CFO) of over $5.4 billion.

The company funded $3.3 billion of capital expenditures and investments inclusive of $0.4 billion of spend related to fourth-quarter acquisitions, repurchased $2.0 billion of shares, and paid $0.9 billion in ordinary dividends. In addition, the company completed strategic debt transactions and repaid naturally maturing debt, resulting in net cash proceeds of $1.2 billion.

Full-year review

Production for 2024 was 1.99 MMboe/d, an increase of 161,000 boe/d from the same period a year ago. After adjusting for impacts from closed acquisitions and dispositions, production increased 69 MBOED or 3% from the same period a year ago.

In 2024, cash provided by operating activities was $20.1 billion. Excluding a $0.2 billion change in working capital, ConocoPhillips generated CFO of $20.3 billion and received disposition proceeds of $0.3 billion. The company funded $12.1 billion in capital expenditures and investments. 

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