Conocophillips Stock Earnings Reports

ConocoPhillips reported a strong operational quarter with production ahead of the high end of guidance and continued quarter-on-quarter declines in capex and operating costs. The company raised full-year 2025 production guidance, reduced adjusted operating cost guidance again, and increased the base dividend by 8%, while returning roughly 45% of year-to-date cash from operations to shareholders. Major project updates: Willow (Alaska) capex was increased to $8.5–$9.0 billion primarily due to higher general and North Slope-specific inflation, but schedule remains intact with first oil narrowed to early 2029 and ~50% project completion; three LNG equity projects (NFE, NFS in Qatar and Port Arthur phase one) had total project capital reduced by $600 million (now ~$3.4 billion) and are ~80% complete with first start-up expected at NFE in 2026. Preliminary 2026 guidance (at ~$60 WTI) calls for materially lower combined CapEx and OpEx (about $1 billion lower vs. 2025 and roughly $3 billion lower vs. pro forma 2024), with underlying production flat to +2% year-over-year. The firm reiterated its multiyear free-cash-flow thesis: four major in-flight projects plus $1 billion of cost/margin actions are expected to drive a $7 billion free cash flow inflection by 2029 (roughly $1 billion improvement annually in 2026–2028 and an incremental ~$4 billion when Willow starts in 2029). The company has completed over $3 billion of asset sales toward a $5 billion target, finished much of the Marathon integration synergies, and retains substantial liquidity (~$6.6 billion cash/short-term + $1.1 billion long-term liquid). Overall message: resilient production and cost execution, disciplined capital trajectory into 2026, manageable project-led capex increase at Willow but preserved schedule and a clear path to significant multi‑year free cash flow growth.