10-KPeriod: FY2025

CONOCOPHILLIPS Annual Report, Year Ended Dec 31, 2025

Filed February 17, 2026For Securities:COP

Summary

ConocoPhillips reported robust financial and operational performance for the fiscal year ended December 31, 2025. The company generated $19.8 billion in cash from operating activities, underscoring the resilience of its globally diversified portfolio. A significant strategic move during the year was the completion of the Marathon Oil acquisition in the fourth quarter of 2024, which was successfully integrated in the first half of 2025, yielding over $1 billion in run-rate synergies and approximately $1 billion in one-time benefits. The company also announced further cost reduction and margin enhancement initiatives, targeting over $1 billion in run-rate benefits by the end of 2026. ConocoPhillips demonstrated a strong commitment to returning capital to shareholders, distributing $9.0 billion through dividends and share repurchases, representing 46% of its net cash provided by operating activities. The ordinary dividend was increased by 8% in December 2025. Operationally, total company production reached 2,375 MBOED, a 20% increase year-over-year, largely driven by new wells across various segments and the Marathon Oil acquisition. Key development projects like Willow in Alaska and LNG projects in Qatar and the US Gulf Coast are progressing on schedule. The company also continued its portfolio optimization strategy, disposing of $3.2 billion in assets in 2025, and is on track to meet its $5 billion disposition target by year-end 2026.

Financial Highlights

49 data points
Beta

Revenue

$58.94B

62.1% Gross Margin

Net Income

$7.99B

13.6% Net Margin

EPS (Diluted)

$6.35

Total Assets

$121.94B

Cash & Equivalents

$6.50B

Free Cash Flow

$19.80B

Financial Statements
Beta
Revenue$58.94B
Cost of Revenue$22.32B
Gross Profit$36.62B
R&D Expenses$78.00M
SG&A Expenses$893.00M
Interest Expense$1.18B
Net Income$7.99B
EPS (Basic)$6.36
EPS (Diluted)$6.35
Shares Outstanding (Basic)1.25B
Shares Outstanding (Diluted)1.25B

Key Highlights

  • 1Generated $19.8 billion in cash from operating activities.
  • 2Successfully integrated the Marathon Oil acquisition, achieving over $1 billion in run-rate synergies and $1 billion in one-time benefits.
  • 3Returned $9.0 billion to shareholders through dividends ($4.0 billion) and share repurchases ($5.0 billion), representing 46% of operating cash flow.
  • 4Total company production increased 20% year-over-year to 2,375 MBOED, bolstered by new wells and the Marathon Oil acquisition.
  • 5Advanced key strategic projects including Willow in Alaska and LNG projects in Qatar and the US Gulf Coast.
  • 6Completed $3.2 billion in asset dispositions in 2025, progressing towards a $5 billion target by year-end 2026.
  • 7Announced incremental cost reductions and margin enhancements totaling over $1 billion on a run-rate basis by year-end 2026.

Frequently Asked Questions

The acquisition of Marathon Oil, completed in late 2024, had a significant positive impact on ConocoPhillips' 2025 results. In the first half of 2025, the company completed the integration of Marathon Oil's assets, achieving over $1 billion in run-rate synergies and approximately $1 billion in one-time benefits. This integration contributed to increased production volumes and operational efficiencies across the portfolio.

ConocoPhillips maintained a strong focus on capital discipline and shareholder returns. The company invested $12.6 billion in capital expenditures and investments, while returning $9.0 billion to shareholders through a combination of $4.0 billion in ordinary dividends and $5.0 billion in share repurchases. This return of capital represented 46% of the net cash provided by operating activities, reinforcing the company's commitment to delivering value to its investors.

ConocoPhillips' growth is driven by its diverse portfolio of low-cost supply assets and strategic development projects. Key growth drivers include new wells coming online in the Lower 48, Canada, and international regions. Strategically, the company is advancing major projects such as the Willow project in Alaska, which is on track for first oil in early 2029, and its equity LNG projects in Qatar (NFE and NFS) and the US Gulf Coast (PALNG), with NFE startup expected in the second half of 2026. These projects are crucial for meeting global energy demand and expanding the company's LNG footprint.

ConocoPhillips is actively managing costs and optimizing its portfolio to enhance efficiency and profitability. The company announced initiatives to achieve more than $1 billion in incremental cost reductions and margin enhancements on a run-rate basis by year-end 2026, partly through a restructuring that reduced the workforce. Concurrently, ConocoPhillips is optimizing its asset portfolio by divesting non-core assets, having closed $3.2 billion in dispositions in 2025 and aiming to meet a $5 billion target by year-end 2026. This disciplined approach aims to focus capital on the most competitive assets and drive superior returns.