NYSE:COP
CONOCOPHILLIPS
A top-tier global independent energy producer delivering robust free cash flow from a diversified portfolio of high-quality oil and gas assets.
Key Metrics
Investment Thesis
Bull Case
The stock offers an attractive yield profile supported by a history of consistent dividend payments and aggressive share buybacks that enhance per-share value. With a substantial cash position of $6.50B and a disciplined focus on low-cost assets, the company is well-positioned to navigate downturns while delivering superior returns in a recovering energy market.
Bear Case
The significant contraction in net income over the past three years highlights the company's sensitivity to commodity price cycles which may persist or worsen. High accumulated other comprehensive losses and substantial treasury stock indicate potential dilution risks if capital markets conditions deteriorate, while long-term liabilities of $45.48B could constrain financial flexibility.
About CONOCOPHILLIPS
ConocoPhillips is a leading independent exploration and production company focusing on upstream oil and gas operations globally. The company generates revenue through the acquisition, development, and commercialization of its own crude oil, natural gas, and natural gas liquids resources across major international markets.
Analysis
Management Discussion
Despite a notable decline in net income from $18.68B in 2022 to $7.99B in 2025, the company maintained strong operational cash flow of $19.80B and returned significant capital through $4.00B in dividends and $5.02B in share repurchases. The recent revenue recovery to $58.94B in 2025 suggests successful portfolio optimization and favorable market pricing conditions stabilizing the business.
Industry Overview
The global energy sector is currently undergoing a transition period where traditional fossil fuel demand remains robust despite the rise of renewable alternatives. Independent exploration and production companies like ConocoPhillips are essential for maintaining energy security, yet they face increasing pressure to balance profitability with environmental sustainability goals and evolving regulatory landscapes.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $78.49B | $56.14B | $54.74B | $58.94B |
| Cost of Revenue | $33.97B | $21.98B | $20.01B | $22.32B |
| Gross Profit | $44.52B | $34.17B | $34.73B | $36.62B |
| Operating Expenses | $16.30B | $17.88B | $21.06B | $23.96B |
| Operating Income | $28.23B | $16.29B | $13.67B | $12.66B |
| R&D | $71.0M | $81.0M | $81.0M | $78.0M |
| G&A | $623.0M | $705.0M | $1.16B | $893.0M |
| Stock-Based Comp | $377.0M | $334.0M | $268.0M | $336.0M |
| D&A | $7.50B | $8.27B | $9.60B | $11.50B |
| Other OpEx | $15.60B | $17.09B | $19.82B | $22.99B |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Income | $195.0M | $412.0M | $402.0M | $311.0M |
| Pre-Tax Income | $28.23B | $16.29B | $13.67B | $12.66B |
| Income Tax | $9.55B | $5.33B | $4.43B | $4.67B |
| Continuing Ops | $18.68B | $10.96B | $9.24B | $7.99B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $18.68B | $10.96B | $9.24B | $7.99B |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $18.68B | $10.96B | $9.24B | $7.99B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $18.75B | $14.33B | $15.65B | $15.53B |
| Cash & Equivalents | $6.46B | $5.63B | $5.61B | $6.50B |
| Marketable Securities | — | $971.0M | $507.0M | $484.0M |
| Inventory | $1.22B | $1.40B | $1.81B | $1.87B |
| Prepaid Expenses | $1.20B | $852.0M | $1.03B | $865.0M |
| Other Current Assets | $9.87B | $5.47B | $6.70B | $5.81B |
| Long-Term Assets | $75.08B | $81.59B | $107.13B | $106.41B |
| Operating Leases | $536.0M | $691.0M | $1.02B | $950.0M |
| Other LT Assets | $59.56B | $73.00B | $97.50B | $96.62B |
| Total Assets | $93.83B | $95.92B | $122.78B | $121.94B |
| Current Liabilities | $12.85B | $10.01B | $12.12B | $11.97B |
| Accounts Payable | $6.11B | — | — | $6.22B |
| Other Current Liab | $6.73B | — | — | $5.75B |
| Long-Term Liabilities | $32.98B | $36.64B | $45.86B | $45.48B |
| Total Liabilities | $45.83B | $46.65B | $57.98B | $57.45B |
| Shareholders' Equity | $48.00B | $49.28B | $64.80B | $64.49B |
| Retained Earnings | $53.03B | $59.27B | $64.87B | $68.86B |
| AOCI | $-6.00B | $-5.67B | $-6.47B | $-5.91B |
| Treasury Stock | $60.19B | $65.64B | $71.15B | $76.22B |
| Total L&E | $93.83B | $95.92B | $122.78B | $121.94B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $18.68B | $10.96B | $9.24B | $7.99B |
| Non-Cash Adjustments | $6.77B | $9.13B | $11.52B | $12.14B |
| Working Capital Changes | $2.86B | $-127.0M | $-637.0M | $-336.0M |
| Cash from Operations | $28.31B | $19.96B | $20.12B | $19.80B |
| Cash from Investing | $-8.74B | $-12.00B | $-11.15B | $-8.84B |
| Share Buybacks | $9.27B | $5.40B | $5.46B | $5.02B |
| Dividends Paid | $5.73B | $5.58B | $3.65B | $4.00B |
| Cash from Financing | $-18.05B | $-8.66B | $-8.84B | $-10.10B |
| FX Effect | $-224.0M | $-99.0M | $-133.0M | $153.0M |
| Net Change in Cash | $1.30B | $-795.0M | $6.0M | $1.01B |
| Beginning Cash | $5.40B | $6.69B | $5.90B | $5.91B |
| Ending Cash | $6.69B | $5.90B | $5.91B | $6.92B |
Frequently Asked Questions
How does CONOCOPHILLIPS make money?
Revenue is driven by upstream exploration and production activities including crude oil, natural gas, condensate, and natural gas liquids sales. The company operates across diverse geographic regions with a focus on low-cost shale basins in the US and significant international holdings in the Middle East, Africa, and Asia Pacific.
What are the main risks for COP?
Investors must consider the inherent volatility of global crude oil and natural gas prices which directly impact earnings. Additionally, regulatory changes regarding carbon emissions, potential geopolitical disruptions in international operating regions, and long-term energy transition trends pose strategic risks to future growth trajectories.
What is COP's competitive advantage?
ConocoPhillips leverages a portfolio of low-cost, high-return assets that provide resilience against commodity price volatility. The company maintains industry-leading operational efficiency through advanced technology integration and disciplined capital allocation strategies focused on shareholder returns via dividends and buybacks.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.