ConocoPhillips’ (COP) shares fell over 3% on Thursday morning after the American oil and gas company reported an uneven performance in its fourth-quarter results.
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During the final three months of 2025, its adjusted earnings per share fell 49% from the year-ago quarter to $1.02, coming in below the Wall Street consensus of $1.10. However, revenue only dropped marginally by 0.4% to $14.19 billion, beating the estimate of $13.94 billion.
ConocoPhillips’ Profit Falls in 2025
Nonetheless, ConocoPhillips’ profits fell 14% from $9.2 billion a year ago to about $8 billion in 2025 due to weaker oil prices.
“We outperformed our initial production, capital, and cost guidance; successfully integrated Marathon Oil, doubling our synergy capture; and made strong progress on our incremental cost reduction and margin enhancement efforts,” explained Ryan Lance, ConocoPhillips’ chairman and CEO.
ConocoPhillips Grows Production, Sees Drop in Cash
In 2025, ConocoPhillips produced 2.34 million barrels of oil equivalent per day (MBOED), with production in the Lower 48 — that is, from all U.S. states minus Alaska and Hawaii — reaching about 1.5 MBOED. This marked a 2.5% growth in overall production.
However, the company’s operational cash flow declined 1.49% to $19.8 billion. This marked a sharp difference compared to rival Chevron (CVX), which reported “industry-leading free cash flow growth” following the integration of the energy company Hess into its operations.
ConocoPhillips Eyes $1B Cost Reduction
Looking ahead, CEO Lance emphasized that the oil exploration and production company will target reducing its capital spending and costs in 2026 by $1 billion.
In addition, the chief executive sees the crude oil producer adding about $1 billion to its free cash flow between 2026 and 2028, bringing the total to about $7 billion by 2029.
Is COP Stock a Buy, Sell, or Hold?
On Wall Street, ConocoPhillips’ shares hold a Moderate Buy consensus rating from analysts. This is based on 15 Buys, three Holds, and one Sell assigned by 19 analysts over the past three months.
In addition, the average COP price target of $112.63 implies about 7% upside. However, analysts’ estimates may change following the latest earnings report.
