ConocoPhillips

COP
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$15.8B
Q1 2025 · +10.5% YoY
TTM ROIC
14%
FY2024 · Adjusted Earnings / Capital Employed (ROCE); Invested Capital = net PP&E + working capital, excl. goodwill · WACC ~7.6% · Moat spread +6.4pp

Financial Snapshot


ticker: COP step: 04 generated: 2026-05-12 source: quick-research

ConocoPhillips (COP) — Financial Snapshot

Income Statement Summary

Metric FY2023 FY2024 FY2025 YoY (FY25)
Revenue $57.7B $56.9B $61.5B +8%
Operating Income ~$16B ~$15B ~$13B -13%
Net Income $10.96B $9.24B $8.04B -13% (oil price + Marathon integration)
Diluted EPS $9.06 $8.05 $6.35 -21%

Production & Cost Metrics

Metric FY2024 FY2025 2026 Guide
Production (mboe/d) 2,183 ~2,360 (incl. Marathon full year) 2,330–2,360
Permian (mboe/d) 833 ~900+ growing
Eagle Ford (mboe/d) 296 ~370 (Marathon contribution) growing
Bakken (mboe/d) 151 ~220 growing
Cost of Supply <$30/bbl WTI <$30/bbl declining
FCF Breakeven WTI ~$40/bbl mid-$30s low $30s by 2030

Cash Flow & Capital Allocation (FY2025)

Metric Value
Operating Cash Flow $19.8B
Capital Expenditures ~$12.4B
Free Cash Flow ~$7.4B
Capital Return Target 45% of CFO
Capital Returned in FY25 (dividends + buybacks + VROC) ~$9–10B
Annual Dividend Per Share $3.18
Q4 2025 Dividend Hike +8%
Dividend Yield ~3.5%
Total Debt ~$26B (post-Marathon)
Net Debt / EBITDA ~1.1x

FY2026 Guidance

Metric 2026 Guide
Production 2.33–2.36 mboe/d (~2.31 ex-Qatar adjustment)
Capex $12–12.5B
Capital Return 45% of CFO
Synergy Target (Marathon) $1B+ run-rate within 12 months
Long-Term FCF Breakeven Target Low $30s WTI by 2030

Key Ratios (approximate)

  • P/E: ~16x (FY25 GAAP) | EV/EBITDA: ~5x | FCF Yield: ~5.5%
  • Revenue Growth (FY25): +8% (Marathon contribution + flat oil)
  • Net Income Margin: 13.6%
  • Dividend Yield: ~3.5% | Capital Return Yield: ~7.5% combined
  • Net Debt / EBITDA: ~1.1x

Growth Profile

FY25 was the integration year for Marathon Oil:

  • Revenue +8% to $61.5B on Marathon full-year contribution
  • Net Income -13% to $8.0B on lower oil prices (Brent averaged $78/bbl) + integration costs
  • Operating Cash Flow $19.8B robust
  • Synergy capture on track for $1B+ run-rate within 12 months

The 2026 setup:

  • Production growth +6–8% with Marathon assets fully integrated
  • Capex $12–12.5B mostly maintenance + Permian growth + Willow ramp
  • 45% of CFO return commitment
  • Continued FCF breakeven decline toward low $30s

Long-term thesis: ConocoPhillips is positioned to capture maximum value from secular oil/gas demand decline by being the lowest-cost barrels producer with the longest inventory + highest capital return discipline. As higher-cost producers exit, COP's low cost-of-supply increases share of marginal oil supply.

Forward Estimates

FY2026 Consensus:

  • Revenue: ~$67–72B (+9–17% — depending on Brent)
  • EPS: ~$7.00–9.00 (depending on $70–85 Brent)
  • FCF: ~$10–14B (Brent-sensitive)

Bull case: Brent holds $75–80; Marathon synergies exceed $1B target; Willow ramps on schedule; multiple expands as cost-of-supply leadership recognized; reaches ~$130–140/share. Bear case: Brent retreats to $55–65; production grew but realized prices compress; capital return throttle; ~$80/share. Consensus targets ~$120–135 vs. trading ~$95–105 (~15–35% implied upside).

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $COP.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/cop/financials/md · → thesis · → memo