Did ConocoPhillips' earnings grow in the fourth quarter of 2024?

No. GAAP earnings were $2.3 billion ($1.90 per share), down from $3.0 billion ($2.52 per share) in 4Q23. Adjusted earnings were $2.4 billion ($1.98 per share), down from $2.9 billion ($2.40 per share). The decline reflected lower realized prices, higher DD&A, and higher operating costs, which more than offset higher volumes from the Marathon Oil acquisition.

How much capital is ConocoPhillips returning to shareholders, and what is the 2025 plan?

The company returned $9.1 billion in 2024, including $5.5 billion in share repurchases and $3.6 billion in ordinary dividends and VROC. For 2025 it has set a $10 billion return-of-capital target at current commodity prices and declared a first-quarter ordinary dividend of $0.78 per share, payable March 3, 2025, to holders of record on Feb. 17, 2025.

What does 2025 guidance imply for ConocoPhillips' operations and cash needs?

Guidance calls for 2025 production of 2.34–2.38 MMBOED, including 20 MBOED of turnaround impacts, and capital expenditures of about $12.9 billion. Adjusted operating costs are expected at $10.9–11.1 billion, DD&A at $11.3–11.5 billion, and the adjusted corporate segment net loss at about $1.1 billion. Guidance excludes special items.

How did the Marathon Oil acquisition affect the reported results?

The acquisition closed in 4Q24 and added low cost of supply inventory adjacent to the Lower 48 unconventional position. Reported results include only one month of Marathon production because the accounting close date was December 1. Transaction and integration costs weighed on GAAP earnings, and DD&A rose. Management targets more than $1 billion in run-rate synergies by year-end 2025, with over half already reflected in capital guidance.

How strong are ConocoPhillips' reserves and balance sheet?

Preliminary year-end 2024 proved reserves were 7.8 BBOE, with a reserve replacement ratio of 244%, or 123% on an organic basis excluding acquisitions and dispositions. Year-end total debt was $24.3 billion, and debt-to-capital was 27%. Cash and short-term investments totaled $6.4 billion. Final reserve figures will be in the Form 10-K.

COP 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed February 6, 2025. Cited figures are marked; the original filing is the authoritative source.

ConocoPhillips (COP) reported fourth-quarter 2024 GAAP earnings of $2.3 billion^a, or $1.90 per share, down from $3.0 billion, or $2.52 per share, in 4Q23.

Adjusted earnings were $2.4 billion^b, or $1.98 per share, versus $2.9 billion, or $2.40 per share, a year earlier. For full-year 2024, GAAP earnings were $9.2 billion ($7.81 per share) and adjusted earnings were $9.2 billion ($7.79 per share), both down from 2023. The decline was driven mainly by lower realized prices ($52.37/BOE in 4Q, down 10% year over year), higher DD&A from the Marathon Oil acquisition, and higher operating costs, partly offset by higher volumes.

Fourth-quarter production reached 2,183 MBOED, up 281 MBOED year over year, though only about 6%^c higher after adjusting for acquisitions and dispositions. Note that the quarter includes only one month of Marathon Oil production because of the accounting close date used. The company stresses returns and shareholder distributions.

It returned $9.1 billion^d to shareholders in 2024, including $5.5 billion in buybacks and $3.6 billion in dividends and VROC, and it announced a $10 billion return-of-capital target for 2025 at current commodity prices. The first-quarter 2025 ordinary dividend is $0.78 per share. Preliminary year-end 2024 proved reserves were 7.8 BBOE, with a reserve replacement ratio of 244% (organic: 123%).

Management targets more than $1 billion in integration synergies run-rate by year-end 2025, with over half already reflected in capital guidance. For 2025, guidance calls for production of 2.34 to 2.38 MMBOED, capital expenditures of about $12.9 billion, adjusted operating costs of $10.9 to $11.1 billion, DD&A of $11.3 to $11.5 billion, and an adjusted corporate segment net loss of about $1.1 billion. Investors will want to watch realized prices, which drive returns, the pace of Marathon Oil synergy capture, and the company's progress on its $2 billion disposition target, which already includes $0.6 billion of signed Lower 48 divestitures expected to close in 1H25.

02—Key points

Key Highlights

Adjusted 4Q24 EPS of $1.98 vs. $2.40 in 4Q23, with GAAP EPS of $1.90; full-year adjusted EPS of $7.79 vs. $8.77 in 2023, reflecting lower realized prices and higher DD&A.
Completed the Marathon Oil acquisition in 4Q24; 4Q24 reported production of 2,183 MBOED, up 6% on a pro forma underlying basis, and only one month of Marathon volumes is included in reported results.
Returned $9.1 billion to shareholders in 2024 ($5.5B buybacks, $3.6B dividends and VROC) and set a 2025 return-of-capital target of $10 billion at current commodity prices.
Generated 2024 CFO of $20.3 billion and ended the year with $6.4 billion of cash and short-term investments, supporting the shareholder return program.
Preliminary 2024 proved reserves of 7.8 BBOE, a 244% reserve replacement ratio (123% organic), with final reserve data to come in the 10-K.
2025 guidance: production of 2.34–2.38 MMBOED, capex of about $12.9B, adjusted operating costs of $10.9–11.1B, and DD&A of $11.3–11.5B.
Targeting more than $1 billion in run-rate integration synergies by year-end 2025, with over half already in capital guidance; $0.6B of noncore Lower 48 divestitures signed toward the $2B target.

03—Questions

Frequently Asked Questions

Did ConocoPhillips' earnings grow in the fourth quarter of 2024?
No. GAAP earnings were $2.3 billion ($1.90 per share), down from $3.0 billion ($2.52 per share) in 4Q23. Adjusted earnings were $2.4 billion ($1.98 per share), down from $2.9 billion ($2.40 per share). The decline reflected lower realized prices, higher DD&A, and higher operating costs, which more than offset higher volumes from the Marathon Oil acquisition.
How much capital is ConocoPhillips returning to shareholders, and what is the 2025 plan?
The company returned $9.1 billion in 2024, including $5.5 billion in share repurchases and $3.6 billion in ordinary dividends and VROC. For 2025 it has set a $10 billion return-of-capital target at current commodity prices and declared a first-quarter ordinary dividend of $0.78 per share, payable March 3, 2025, to holders of record on Feb. 17, 2025.
What does 2025 guidance imply for ConocoPhillips' operations and cash needs?
Guidance calls for 2025 production of 2.34–2.38 MMBOED, including 20 MBOED of turnaround impacts, and capital expenditures of about $12.9 billion. Adjusted operating costs are expected at $10.9–11.1 billion, DD&A at $11.3–11.5 billion, and the adjusted corporate segment net loss at about $1.1 billion. Guidance excludes special items.
How did the Marathon Oil acquisition affect the reported results?
The acquisition closed in 4Q24 and added low cost of supply inventory adjacent to the Lower 48 unconventional position. Reported results include only one month of Marathon production because the accounting close date was December 1. Transaction and integration costs weighed on GAAP earnings, and DD&A rose. Management targets more than $1 billion in run-rate synergies by year-end 2025, with over half already reflected in capital guidance.
How strong are ConocoPhillips' reserves and balance sheet?
Preliminary year-end 2024 proved reserves were 7.8 BBOE, with a reserve replacement ratio of 244%, or 123% on an organic basis excluding acquisitions and dispositions. Year-end total debt was $24.3 billion, and debt-to-capital was 27%. Cash and short-term investments totaled $6.4 billion. Final reserve figures will be in the Form 10-K.

04—Continue

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