ConocoPhillips Trims Capex And Operating Cost Outlook, Announces CFO Transition

ConocoPhillips COP shares are trading higher after the company released its first-quarter FY25 results.

The oil and gas giant clocked a first-quarter revenue of $17.10 billion, beating the consensus of $15.82 billion. Adjusted EPS of $2.09 beat the consensus of $2.07. 

The company produced 2,389 thousand barrels of oil equivalent per day (MBOED). That's an increase of 487 MBOED from the same period a year ago.

Also Read: ConocoPhillips (COP) Stock Falls on OPEC+ Supply Hike, Lower Oil Prices

Lower 48 production averaged 1,462 MBOED, which includes 816 MBOED from the Permian, 379 MBOED from the Eagle Ford, and 212 MBOED from the Bakken assets.

The average realized price fell 6% Y/Y to $53.34 per barrel of oil equivalent (BOE).

Operating cash flow stood at $6.1 billion in the quarter, and it generated a free cash flow of $2.10 billion. The company repurchased $1.5 billion worth of shares and returned $1.0 billion through the ordinary dividend.

Conoco ended the quarter with $7.5 billion in cash and short-term investments and $1.0 billion in long-term investments.

Dividend: ConocoPhillips expects a quarterly dividend per share of $0.78, payable on June 2, 2025, to stockholders of record as of May 19, 2025.

Outlook: ConocoPhillips projects second-quarter production of 2.34 to 2.38 million barrels of oil equivalent per day.

The company lowered capital expenditures guidance to $12.3 billion- $12.6 billion from around $12.9 billion. 

It lowered the adjusted operating cost outlook to $10.7 billion to $10.9 billion from the prior guidance of $10 billion to $11.1 billion.

Ryan Lance, chairman and chief executive officer, said, "Amid a volatile macro environment, we remain confident in the competitive advantages provided by our differentiated portfolio, strong balance sheet and disciplined capital allocation framework that prioritizes returns on and of capital to shareholders."

In a separate release, ConocoPhillips disclosed that W.L. (Bill) Bullock, executive vice president and chief financial officer (CFO), plans to retire after 39 years of service.

Andy O'Brien, currently senior vice president, Strategy, Commercial, Sustainability and Technology, will succeed Bill as new CFO, effective June 1, 2025. 

Investors can gain exposure to the COP stock via Texas Capital Funds Trust Texas Capital Texas Oil Index ETF OILT and IShares U.S. Oil & Gas Exploration & Production ETF IEO.

Price Action: COP shares are up 2.54% at $89.94 at the last check on Thursday.

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