ConocoPhillips Q2 Earnings Beat Estimates, Revenues Improve Y/Y

ConocoPhillips COP reported second-quarter 2025 adjusted earnings per share of $1.42, which beat the Zacks Consensus Estimate of $1.36. 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 $14.7 billion increased from $14.1 billion in the year-ago period. The top line missed the Zacks Consensus Estimate of $14.9 billion.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 QuoteProductionTotal production averaged 2,391 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 1,945 MBoe/d. The figure also beat our estimate of 2,353 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 1,155 thousand barrels per day (MBbls/d) from the year-ago quarter’s 955 MBbls/d. The figure was also above our estimate of 1,137 MBbls/d.Natural gas liquids production totaled 424 MBbls/d, higher than the year-ago figure of 295 MBbls/d. Bitumen production for the quarter totaled 144 MBbls/d, up from 133 MBbls/d in the year-ago quarter.The company’s natural gas production was 4,005 million cubic feet per day (MMcf/d), higher than the year-ago level of 3,370 MMcf/d.Realized PricesThe average realized oil equivalent price decreased to $45.77 per barrel from $56.56 a year ago.The average realized crude oil price was $64.23 per barrel, implying a decrease from the year-ago figure of $81.30. The figure was also below our projection of $65.30 per barrel.The average realized natural gas price was $4.16 per thousand cubic feet, down from $4.22 reported in the year-ago quarter. Realized natural gas liquids price decreased to $20.98 per barrel from the year-ago quarter’s $22.60.Total ExpensesExpenses increased to $11.7 billion from $10.5 billion in the corresponding period of 2024. The figure was below our projection of $12.2 billion. The cost of purchased commodities increased to $5.1 billion from $4.9 billion reported a year ago.Exploration costs decreased to $81 million from $102 million in the comparable period of 2024.Balance Sheet & Capital SpendingAs of June 30, 2025, ConocoPhillips had $4.9 billion in cash and cash equivalents. The company had a total long-term debt of $23.1 billion and a short-term debt of $414 million as of the same date.Capital expenditure and investments totaled $3.29 billion. Net cash provided by operating activities was $3.5 billion.GuidanceFor the third quarter of 2025, COP expects production to be in the range of 2.33 to 2.37 MBoe/d. Full-year production is anticipated to be in the band of 2.35-2.37 MBoe/d.COP’s Zacks Rank and Key PicksCurrently, COP carries a Zacks Rank #3 (Hold).Investors interested in the energy sector may look at a couple of better-ranked stocks like Antero Midstream Corporation AM, Delek Logistics Partners, LP DKL and Enbridge Inc. ENB, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.AM’s earnings beat estimates in one of the trailing four quarters, met once and missed in the other two, delivering an average negative surprise of 5.50%.Delek Logistics owns, operates, acquires and constructs crude oil and refined products logistics and marketing assets. DKL operates crude oil transportation pipelines, refined product pipelines, crude oil gathering systems and associated crude oil storage tanks.Delek Logistics’ earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 79.8%. The Zacks Consensus Estimate for DKL’s 2025 earnings indicates 30.43% year-over-year growth.Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term contracts that act as a protection against big oil price swings or changes in shipment. ENB’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 0.28%.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ConocoPhillips (COP): Free Stock Analysis Report Antero Midstream Corporation (AM): Free Stock Analysis Report Enbridge Inc (ENB): Free Stock Analysis Report Delek Logistics Partners, L.P. (DKL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks