As energy markets grapple with fluctuating oil prices and evolving global demands, major players like ConocoPhillips (NYSE:COP) are navigating a challenging landscape to maintain profitability. The company reported second-quarter 2025 earnings of $2.0 billion, or $1.56 per share, compared with $2.3 billion, or $1.98 per share, in the same quarter last year.
Adjusted earnings totaled $1.8 billion, or $1.42 per share, beating the consensus estimate of $1.40. Revenue for the quarter was $14.74 billion, above the expected $14.63 billion.
Total production for the quarter rose to 2,391 thousand barrels of oil equivalent per day (MBOED), an increase of 446 MBOED from a year ago. After adjusting for closed acquisitions and dispositions, production increased by 72 MBOED, or 3%.
Lower 48 output totaled 1,508 MBOED, including 845 MBOED from the Permian, 408 MBOED from the Eagle Ford, and 205 MBOED from the Bakken.
The company’s average realized price declined 19% year-over-year to $45.77 per barrel of oil equivalent (BOE), down from $56.56.
Also Read: Trump’s $750 Billion Coup In Europe Could Bring Energy Stocks Back From The Dead
Cash provided by operating activities was $3.5 billion. Excluding a $1.2 billion change in operating working capital, cash from operations totaled $4.7 billion. It ended the quarter with $5.7 billion in cash and short-term investments, along with $1.1 billion in long-term investments.
The company spent $3.3 billion on capital expenditures and investments, repurchased $1.2 billion in shares, paid $1.0 billion in ordinary dividends, and retired $0.2 billion in debt.
Dividend: ConocoPhillips declared a third-quarter ordinary dividend of $0.78 per share, payable Sept. 2 to shareholders of record as of Aug. 18.
During the quarter, the company completed its integration of Marathon Oil and remains on track to deliver more than $1 billion in annual run-rate synergies and over $1 billion in one-time benefits by year-end 2025.
It also announced more than $1 billion in additional cost reductions and margin enhancements expected by year-end 2026. ConocoPhillips signed a $1.3 billion agreement to sell its Anadarko Basin assets, expected to close early in the fourth quarter, surpassing its $2 billion asset disposition target ahead of schedule. The company has raised that target to $5 billion by the end of 2026.
ConocoPhillips advanced its global LNG strategy with a regasification agreement at the Dunkerque terminal in France and a sales agreement in Asia, both set to begin in 2028. Planned turnarounds in Norway and Qatar were completed on schedule.
Six-month operating cash flow totaled $9.6 billion. Excluding a $0.6 billion change in working capital, cash from operations reached $10.2 billion.
The company received $1.3 billion in proceeds from asset sales, spent $6.7 billion on capital investments, repurchased $2.7 billion in shares, paid $2.0 billion in dividends, and retired $0.7 billion in debt.
Outlook: ConocoPhillips expects third-quarter production between 2.33 million and 2.37 million BOE per day. Full-year 2025 production is projected to range from 2.35 million to 2.37 million BOE per day. The company expects its full-year effective tax rate to fall in the mid-to-high 30% range, with a deferred tax benefit of approximately $0.5 billion.
COP Price Action: ConocoPhillips shares were down 0.55% at $92.60 at the time of publication on Thursday, according to Benzinga Pro.
Read Next:
Photo: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
