ConocoPhillips Reports Q2 2025 Results, Declares Dividend

ConocoPhillips Reports Second-Quarter 2025 Results, Declares Dividend, and Highlights Strategic Progress

ConocoPhillips (NYSE: COP), one of the world’s leading independent exploration and production companies, has announced its financial and operational results for the second quarter of 2025, alongside a quarterly dividend declaration. While earnings were slightly lower compared to the same period in 2024, the company emphasized strong operational performance, successful integration of major assets, and continued strategic progress in both traditional and emerging energy markets.

Earnings Performance

For the quarter ended June 30, 2025, ConocoPhillips reported earnings of $2.0 billion, translating to $1.56 per share. This compares with earnings of $2.3 billion, or $1.98 per share, in the second quarter of 2024. On an adjusted basis — excluding special items primarily related to gains from asset sales — the company posted adjusted earnings of $1.8 billion, or $1.42 per share, versus $2.3 billion, or $1.98 per share, in the same period last year.

The year-over-year decline in adjusted earnings was mainly attributed to lower commodity prices, higher depreciation, depletion and amortization (DD&A) expenses, and increased operating costs, partially offset by increased production volumes.

Chairman and Chief Executive Officer Ryan Lance praised the company’s performance despite market headwinds:

“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. And we aren’t stopping there. 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.”

Operational Highlights

ConocoPhillips’ total company production in the second quarter averaged 2,391 thousand barrels of oil equivalent per day (MBOED), representing an increase of 446 MBOED from the same period in 2024. After adjusting for the effects of acquisitions and asset sales, production increased by 72 MBOED, or 3% year-over-year.

The company’s Lower 48 operations contributed 1,508 MBOED, including:

Permian Basin: 845 MBOED
Eagle Ford: 408 MBOED
Bakken: 205 MBOED

This growth reflects successful execution following the Marathon Oil acquisition, as well as optimization of operations to reach steady-state activity levels.

Other notable second-quarter operational and strategic developments include:

Asset Sales: Signed an agreement to divest Anadarko Basin assets for $1.3 billion, with closing expected in early Q4 2025, subject to customary adjustments.
LNG Strategy Expansion: Advanced its global liquefied natural gas (LNG) portfolio by signing a regasification agreement for France’s Dunkerque terminal and a long-term sales agreement in Asia. Both deals are slated to commence in 2028.
International Operations: Successfully completed planned maintenance turnarounds in Norway and Qatar, ensuring operational reliability and safety.

Commodity Prices and Financial Impact

ConocoPhillips’ average realized price for the quarter was $45.77 per barrel of oil equivalent (BOE), down 19% from $56.56 per BOE in Q2 2024. This decline was a key driver behind the reduced earnings despite production growth.

Lower commodity prices were partially offset by increased sales volumes. However, rising DD&A and operating expenses — in part due to expanded asset portfolios — also weighed on results.

Cash Flow and Capital Allocation

Cash provided by operating activities (CFO) in the second quarter totaled $3.5 billion. When excluding a $1.2 billion change in operating working capital — mainly linked to tax payment timing — CFO reached $4.7 billion.

Key cash flow actions during the quarter included:

Capital Expenditures and Investments: $3.3 billion
Share Repurchases: $1.2 billion
Ordinary Dividend Payments: $1.0 billion
Debt Retirement: $0.2 billion at maturity

Additionally, ConocoPhillips received $0.7 billion in proceeds from the sale of its Ursa field and associated assets.

Balance Sheet Strength

The company ended the quarter with $5.7 billion in cash and short-term investments and $1.1 billion in long-term investments, providing strong liquidity for both operational needs and shareholder returns.

Shareholder Returns

ConocoPhillips continued its track record of returning significant capital to shareholders. In Q2 2025, total distributions reached $2.2 billion, consisting of:

$1.2 billion in share repurchases
$1.0 billion in ordinary dividends

The board also declared a third-quarter ordinary dividend of $0.78 per share, payable September 2, 2025, to shareholders of record at the close of business on August 18, 2025.

Six-Month 2025 Review

For the first half of 2025, ConocoPhillips generated earnings of $4.8 billion, or $3.79 per share, compared with $4.9 billion, or $4.14 per share, in the first half of 2024. Adjusted earnings for the six-month period were $4.5 billion ($3.52 per share) versus $4.7 billion ($4.02 per share) in the prior year.

Production averaged 2,391 MBOED for the six-month period, an increase of 468 MBOED from the same period in 2024. Adjusting for acquisitions and dispositions, production rose by 96 MBOED, or 4%.

The average realized price for the first half of 2025 was $49.54 per BOE, down 12% from $56.58 per BOE in the prior year.

First-Half Cash Flow and Capital Uses

In the first six months of 2025, CFO totaled $9.6 billion. Adjusting for a $0.6 billion change in operating working capital, CFO was $10.2 billion. The company also received $1.3 billion in asset disposition proceeds.

Capital and shareholder return actions in the first half included: