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ConocoPhillips Misses Q4 Earnings Estimates on Lower Prices
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Key Takeaways
ConocoPhillips reported Q4 EPS of $1.02, down from a year ago, while revenues of $14.2B beat estimates.
COP's earnings were pressured by lower realized prices, partially offset by higher oil-equivalent output.
COP expects 2026 production of 2.33-2.36 MMBOED and plans to return about 45% of operating cash flow.
ConocoPhillips (COP - Free Report) reported fourth-quarter 2025 adjusted earnings per share of $1.02, which lagged the Zacks Consensus Estimate of $1.08. The bottom line decreased from the prior-year level of $1.98.
One of the world’s leading independent oil and gas producers, headquartered in Houston, TX, ConocoPhillips’ quarterly revenues of $14.2 billion declined from $14.7 billion in the year-ago period. The top line surpassed the Zacks Consensus Estimate of $13.9 billion.
Weak quarterly earnings can be attributed to lower average realized oil-equivalent prices. The negatives were partially offset by higher oil-equivalent production volumes.
Total production averaged 2,320 thousand barrels of oil-equivalent per day (MBoe/d), up from the year-ago quarter’s 2,183 MBoe/d. Of the total output, 48% was crude oil. Overall production was higher than the year-ago level due to increased production in Europe, the Middle East and North Africa.
Crude oil production increased to 1,115 thousand barrels per day (MBbls/d) from the year-ago quarter’s 1,070 MBbls/d.
Natural gas liquids’ production totaled 413 MBbls/d, higher than the year-ago figure of 362 MBbls/d. Bitumen production for the quarter totaled 123 MBbls/d, down from 139 MBbls/d in the year-ago quarter.
The company’s natural gas production was 4,016 million cubic feet per day (MMcf/d), higher than the year-ago level of 3,674 MMcf/d.
COP’s Realized Prices
The average realized oil equivalent price decreased to $42.46 per barrel from $52.37 a year ago.
The average realized crude oil price was $60.22 per barrel, implying a decrease from $71.04 reported a year ago.
The average realized natural gas price was $3.72 per thousand cubic feet, down from $5.12 in the year-ago quarter. Realized natural gas liquids price plunged to $19.02 per barrel from the year-ago quarter’s $23.93.
COP’s Total Expenses
Expenses marginally increased to $11.9 billion from $11.8 billion in the corresponding period of 2024. The cost of purchased commodities rose to $5.2 billion from $5.1 billion a year ago.
Exploration costs increased to $138 million from $71 million in the comparable period of 2024.
Balance Sheet & Capital Spending of COP
As of Dec. 31, 2025, ConocoPhillips had $6.5 billion in cash and cash equivalents. The company had a total long-term debt of $22.4 billion and a short-term debt of $1.02 billion as of the same date.
Capital expenditure and investments totaled $3.02 billion. Net cash provided by operating activities was $4.3 billion.
Guidance by COP
The company expects first-quarter 2026 production of 2.30-2.34 million barrels of oil equivalent per day (MMBOED), including the impact of weather-related downtime. For 2026, the company expects production to average between 2.33 and 2.36 MMBOED.
Capital expenditures for 2026 are expected to be approximately $12 billion, while adjusted operating costs are anticipated to total about $10.2 billion. Depreciation, depletion and amortization expenses are estimated at $11.7-$11.9 billion, and the adjusted net loss for the corporate and other segment is projected to be around $0.9 billion.
ConocoPhillips plans to return approximately 45% of cash flow from operations to shareholders in 2026.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and business opportunities, ensuring steady revenue growth.
OII’s earnings beat estimates in three of the trailing four quarters and missed in the other, delivering an average surprise of 12.3%. OII has a Value and Growth Score of B.
USA Compression Partners is among the largest independent providers of natural gas compression services in the United States based on fleet horsepower. The partnership is well-positioned in high-growth regions such as the Permian, Mid-Continent and Gulf Coast basins, where natural gas output continues to rise. Growth in LNG exports and increasing power demand are driving higher production in these areas. With its strategically located footprint, USA Compression is well-placed to benefit from expanding production, supporting sustained demand for its compression services.
USAC is expected to witness year-over-year earnings and revenue growth of 33.7% and 4%, respectively, in 2026. The company has a Value and Momentum Score of B.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its production prospects in the future, which is expected to enhance its revenues.
WTI’s earnings beat estimates in three of the trailing four quarters and met in the other, delivering an average surprise of 27.1%. The company has a Value Score of A, and a Growth and Momentum Score of B.
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ConocoPhillips Misses Q4 Earnings Estimates on Lower Prices
Key Takeaways
ConocoPhillips (COP - Free Report) reported fourth-quarter 2025 adjusted earnings per share of $1.02, which lagged the Zacks Consensus Estimate of $1.08. The bottom line decreased from the prior-year level of $1.98.
One of the world’s leading independent oil and gas producers, headquartered in Houston, TX, ConocoPhillips’ quarterly revenues of $14.2 billion declined from $14.7 billion in the year-ago period. The top line surpassed the Zacks Consensus Estimate of $13.9 billion.
Weak quarterly earnings can be attributed to lower average realized oil-equivalent prices. The negatives were partially offset by higher oil-equivalent production volumes.
ConocoPhillips Price, Consensus and EPS Surprise
ConocoPhillips price-consensus-eps-surprise-chart | ConocoPhillips Quote
Production at COP
Total production averaged 2,320 thousand barrels of oil-equivalent per day (MBoe/d), up from the year-ago quarter’s 2,183 MBoe/d. Of the total output, 48% was crude oil. Overall production was higher than the year-ago level due to increased production in Europe, the Middle East and North Africa.
Crude oil production increased to 1,115 thousand barrels per day (MBbls/d) from the year-ago quarter’s 1,070 MBbls/d.
Natural gas liquids’ production totaled 413 MBbls/d, higher than the year-ago figure of 362 MBbls/d. Bitumen production for the quarter totaled 123 MBbls/d, down from 139 MBbls/d in the year-ago quarter.
The company’s natural gas production was 4,016 million cubic feet per day (MMcf/d), higher than the year-ago level of 3,674 MMcf/d.
COP’s Realized Prices
The average realized oil equivalent price decreased to $42.46 per barrel from $52.37 a year ago.
The average realized crude oil price was $60.22 per barrel, implying a decrease from $71.04 reported a year ago.
The average realized natural gas price was $3.72 per thousand cubic feet, down from $5.12 in the year-ago quarter. Realized natural gas liquids price plunged to $19.02 per barrel from the year-ago quarter’s $23.93.
COP’s Total Expenses
Expenses marginally increased to $11.9 billion from $11.8 billion in the corresponding period of 2024. The cost of purchased commodities rose to $5.2 billion from $5.1 billion a year ago.
Exploration costs increased to $138 million from $71 million in the comparable period of 2024.
Balance Sheet & Capital Spending of COP
As of Dec. 31, 2025, ConocoPhillips had $6.5 billion in cash and cash equivalents. The company had a total long-term debt of $22.4 billion and a short-term debt of $1.02 billion as of the same date.
Capital expenditure and investments totaled $3.02 billion. Net cash provided by operating activities was $4.3 billion.
Guidance by COP
The company expects first-quarter 2026 production of 2.30-2.34 million barrels of oil equivalent per day (MMBOED), including the impact of weather-related downtime. For 2026, the company expects production to average between 2.33 and 2.36 MMBOED.
Capital expenditures for 2026 are expected to be approximately $12 billion, while adjusted operating costs are anticipated to total about $10.2 billion. Depreciation, depletion and amortization expenses are estimated at $11.7-$11.9 billion, and the adjusted net loss for the corporate and other segment is projected to be around $0.9 billion.
ConocoPhillips plans to return approximately 45% of cash flow from operations to shareholders in 2026.
COP’s Zacks Rank & Stocks to Consider
Currently, COP carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the energy sector are Oceaneering International (OII - Free Report) , USA Compression Partners (USAC - Free Report) and W&T Offshore (WTI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and business opportunities, ensuring steady revenue growth.
OII’s earnings beat estimates in three of the trailing four quarters and missed in the other, delivering an average surprise of 12.3%. OII has a Value and Growth Score of B.
USA Compression Partners is among the largest independent providers of natural gas compression services in the United States based on fleet horsepower. The partnership is well-positioned in high-growth regions such as the Permian, Mid-Continent and Gulf Coast basins, where natural gas output continues to rise. Growth in LNG exports and increasing power demand are driving higher production in these areas. With its strategically located footprint, USA Compression is well-placed to benefit from expanding production, supporting sustained demand for its compression services.
USAC is expected to witness year-over-year earnings and revenue growth of 33.7% and 4%, respectively, in 2026. The company has a Value and Momentum Score of B.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its production prospects in the future, which is expected to enhance its revenues.
WTI’s earnings beat estimates in three of the trailing four quarters and met in the other, delivering an average surprise of 27.1%. The company has a Value Score of A, and a Growth and Momentum Score of B.