ConocoPhillips COP reported first-quarter 2025 adjusted earnings per share of $2.09, which beat the Zacks Consensus Estimate of $2.06. The bottom line increased from the prior-year level of $2.03. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
One of the world’s leading independent oil and gas producers, headquartered in Houston, TX, ConocoPhillips’ quarterly revenues of $17.1 billion increased from $14.48 billion in the year-ago period. The top line beat the Zacks Consensus Estimate of $16.54 billion.
The strong quarterly results can be attributed to higher oil equivalent production volumes. The positives, however, were partially counterbalanced by decreased average realized oil equivalent prices and increased total costs and expenses.
Total production averaged 2,389 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 1,902 MBoe/d. The figure also beat our estimate of 2,340 MBoe/d. Of the total output, more than 48% was crude oil. Overall production was higher than the year-ago level, primarily due to increased production in Europe, the Middle East and North Africa.
Crude oil production increased to 1,166 thousand barrels per day (MBbls/d) from the year-ago quarter’s 944 MBbls/d. The figure was also above our estimate of 1,119 MBbls/d.
Natural gas liquids production totaled 402 MBbls/d, higher than the year-ago figure of 279 MBbls/d. Bitumen production for the quarter totaled 143 MBbls/d, up from 129 MBbls/d in the year-ago quarter.
The company’s natural gas production was 4,070 million cubic feet per day (MMcf/d), higher than the year-ago level of 3,302 MMcf/d.
Realized Prices
The average realized oil equivalent price decreased to $53.34 per barrel from $56.60 a year ago.
The average realized crude oil price was $71.65 per barrel, implying a decrease from the year-ago figure of $78.64. The figure was also below our projection of $72.51 per barrel.
The average realized natural gas price was $5.62 per thousand cubic feet, up from $5.02 reported in the year-ago quarter. Realized natural gas liquids price increased to $25.40 per barrel from the year-ago quarter’s $24.25.
Total Expenses
Expenses increased to $12.6 billion from $10.7 billion in the corresponding period of 2024. The figure was below our projection of $12.8 billion. The cost of purchased commodities increased to $6.2 billion from $5.3 billion reported a year ago.
Exploration costs increased to $117 million from $112 million in the comparable period of 2024.
Balance Sheet & Capital Spending
As of March 31, 2025, ConocoPhillips had $6.3 billion in cash and cash equivalents. The company had a total long-term debt of $23.2 billion and a short-term debt of $608 million as of the same date.
Capital expenditure and investments totaled $3.38 billion. Net cash provided by operating activities was $6.1 billion.
Guidance
For the second quarter of 2025, COP expects production to be in the range of 2.34-2.38 MBoe/d. Full-year 2025 production guidance has remained unchanged at 2.34-2.38 MBoe/d.
Full-year capital expenditure guidance has been lowered to $12.3-$12.6 billion from approximately $12.9 billion. Full-year adjusted operating cost projection has been lowered to $10.7-$10.9 billion from $10.9-$11.1 billion.
COP’s Zacks Rank and Key Picks
Currently, COP carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, Nabors Industries Ltd. NBR and RPC Inc. RES. While Archrock presently sports a Zacks Rank #1 (Strong Buy), Nabors Industries and RPC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. AROC provides natural gas contract compression services and generates stable fee-based revenues.
Archrock’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 8.81%.
Nabors benefits from its leadership in North American land drilling, a modern rig fleet, and a strong international presence, including expanding operations in high-growth regions like Saudi Arabia, Kuwait and Argentina. The Parker Wellbore acquisition strengthens its global service portfolio and adds meaningful EBITDA and cost synergies. Nabors is also leveraging digital innovation through its RigCLOUD and Corva integration, enhancing operational efficiency. NBR has a Zacks Style Score of A for Value.
RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividends and share buybacks. RPC’s current dividend yield is higher than that of the composite stocks belonging to the industry. Its new Tier IV dual-fuel fleet has boosted profits, with plans for further expansion of high-efficiency equipment to enhance operational capabilities.
RES’ earnings beat estimates in one of the trailing four quarters, met once and missed in the other two, delivering an average negative surprise of 8.66%.
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