ConocoPhillips COP reported fourth-quarter 2024 adjusted earnings per share of $1.98, which beat the Zacks Consensus Estimate of $1.89. The bottom line, however, decreased from the prior-year level of $2.40.

One of the world’s leading independent oil and gas producers, headquartered in Houston, TX, ConocoPhillips’ quarterly revenues of $14.74 billion decreased from $15.31 billion in the year-ago period. The top line beat the Zacks Consensus Estimate of $14.68 billion.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The better-than-expected quarterly earnings 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.

ConocoPhillips Price, Consensus and EPS Surprise

ConocoPhillips price-consensus-eps-surprise-chart | ConocoPhillips Quote

Production

Total production averaged 2,183 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 1,902 MBoe/d. The metric also beat our estimate of 1,996 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 1,070 thousand barrels per day (MBbls/d) from the year-ago quarter’s 949 MBbls/d. The figure was above our estimate of 962.2 MBbls/d.

Natural gas liquids production totaled 362 MBbls/d, higher than the year-ago figure of 301 MBbls/d. Bitumen production for the quarter totaled 139 MBbls/d, up from 125 MBbls/d in the year-ago quarter.

The company’s natural gas production was 3,674 million cubic feet per day (MMcf/d), higher than the year-ago level of 3,161 MMcf/d.

Realized Prices

The average realized oil equivalent price decreased to $52.37 per barrel from $58.21 a year ago.

The average realized crude oil price was $71.04 per barrel, implying a decrease from the year-ago figure of $80.80. The metric was also below our projection of $71.92 per barrel.

The average realized natural gas price was $5.12 per thousand cubic feet, down from $5.41 reported in the year-ago quarter. Realized natural gas liquids price increased to $23.93 per barrel from the year-ago quarter’s $21.97.

Total Expenses

Expenses increased to $11.8 billion from $11 billion in the corresponding period of 2023. The figure was above our projection of $10.7 billion. The cost of purchased commodities fell to $5.1 billion from $5.7 billion reported a year ago.

Exploration costs decreased to $71 million from $85 million in the comparable period of 2023.

Balance Sheet & Capital Spending

As of Dec. 31, 2024, ConocoPhillips had $5.6 billion in cash and cash equivalents. The company had a total long-term debt of $23.3 billion and a short-term debt of $1.04 billion as of the same date.

Capital expenditure and investments totaled $3.32 billion. Net cash provided by operating activities was $4.5 billion.

Guidance

For the first quarter of 2025, COP expects production to be in the range of 2.34-2.38 MBoe/d. Full-year 2025 production is expected to be in the band of 2.34-2.38 MBoe/d. Full-year capital expenditures are anticipated to be $12.9 billion.

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 SM Energy Company SM, Sunoco LP SUN and Range Resources Corporation RRC. While SM Energy and Sunoco presently sport a Zacks Rank #1 (Strong Buy) each, Range Resourcescarries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.

Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. Sunoco is poised to benefit from the strategic acquisitions aimed at diversifying its business portfolio.

Range Resources is among the top 10 natural gas producers in the United States. Its diversified portfolio is spread between low-risk and long reserve-life Appalachian assets. The company’s extensive inventory of Marcellus resources with low breakeven points is a significant asset. With expanded LPG export capacity, RRC is well-positioned to meet rising global demand, capitalizing on natural gas' role as a cleaner-burning fuel amid a low-carbon shift. 

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