10-KPeriod: FY2024

CONOCOPHILLIPS Annual Report, Year Ended Dec 31, 2024

Filed February 18, 2025For Securities:COP

Summary

ConocoPhillips reported a strong financial performance for the year ending December 31, 2024, characterized by significant production growth and robust shareholder returns. The company's production increased by 9% year-over-year to 1,987 MBOED, bolstered by contributions from newly brought-online wells across various segments and the impactful acquisition of Marathon Oil Corporation in November 2024. This strategic acquisition is expected to yield approximately $1 billion in synergies within the first year and significantly enhances ConocoPhillips' Lower 48 portfolio and global LNG capacity. The company continued its commitment to returning capital to shareholders, distributing $9.1 billion through dividends and share repurchases, representing 45% of its net cash provided by operating activities. Looking ahead, ConocoPhillips plans to return $10 billion to shareholders in 2025, underscoring its disciplined investment framework and focus on delivering competitive returns through commodity price cycles.

Financial Highlights

49 data points
Beta

Revenue

$54.74B

63.4% Gross Margin

Net Income

$9.24B

16.9% Net Margin

EPS (Diluted)

$7.81

Total Assets

$122.78B

Cash & Equivalents

$5.61B

Free Cash Flow

$20.12B

Financial Statements
Beta
Revenue$54.74B
Cost of Revenue$20.01B
Gross Profit$34.73B
R&D Expenses$81.00M
SG&A Expenses$1.16B
Interest Expense$941.00M
Net Income$9.24B
EPS (Basic)$7.82
EPS (Diluted)$7.81
Shares Outstanding (Basic)1.18B
Shares Outstanding (Diluted)1.18B

Key Highlights

  • 1Completed the acquisition of Marathon Oil Corporation for approximately $16.5 billion, significantly expanding the Lower 48 portfolio and global LNG reach.
  • 2Achieved total company production of 1,987 MBOED, a 9% increase year-over-year, with the Lower 48 segment reaching record production.
  • 3Returned $9.1 billion to shareholders in 2024 through dividends ($3.6 billion) and share repurchases ($5.5 billion).
  • 4Announced a planned 2025 return of capital target of $10 billion, demonstrating continued commitment to shareholder value.
  • 5Maintained balance sheet strength with an 'A' rating and ended 2024 with $5.9 billion in cash, cash equivalents, and restricted cash.
  • 6Achieved a reserve replacement ratio of 244% in 2024, with an organic reserve replacement ratio of 123%, indicating successful resource replacement.
  • 7Advanced global LNG strategy with new regasification capacity agreements in Belgium and a long-term sales agreement in Asia.

Frequently Asked Questions

The acquisition of Marathon Oil, completed in November 2024 for approximately $16.5 billion, significantly strengthened ConocoPhillips' portfolio. It added low-cost supply inventory to the Lower 48 operations and enhanced global LNG capacity through operations in Equatorial Guinea. The company anticipates realizing approximately $1 billion in synergies within the first year post-acquisition.

ConocoPhillips returned a total of $9.1 billion to shareholders in 2024. This included $3.6 billion through ordinary dividends and Variable Return of Cash (VROC) payments, with the ordinary dividend increased to $0.78 per share in Q4 2024 to incorporate the VROC component. An additional $5.5 billion was returned through share repurchases.

For 2025, ConocoPhillips has provided production guidance of 2.34 to 2.38 MMBOED, which includes impacts from planned turnarounds. Capital expenditures are planned to be approximately $12.9 billion, supporting ongoing development drilling, major projects, and exploration activities.

ConocoPhillips employs a strategy of maintaining balance sheet strength, providing peer-leading distributions, making disciplined investments, and demonstrating responsible ESG performance to deliver competitive returns through commodity price cycles. The company remains unhedged, focusing on its low cost of supply portfolio and disciplined capital allocation.