ConocoPhillips has announced its fourth-quarter 2025 financial results, revealing that the company fell short of profit expectations. The energy giant reported lower earnings compared to the previous year, primarily due to a significant drop in oil prices. In response, ConocoPhillips is implementing substantial cost-saving measures, including a $1 billion reduction in capital and operating expenses for the upcoming year.
ConocoPhillips reported adjusted earnings of $1.3 billion, or $1.02 per share, for the fourth quarter of 2025. This figure represents a significant decrease from the $2.4 billion, or $1.98 per share, earned in the same period of 2024. The company’s performance also fell below the $1.07 per share consensus estimate from analysts. Management attributed the earnings miss to the prevailing lower oil prices, which were only partially offset by increased production volumes.
During the fourth quarter of 2025, ConocoPhillips’ average realized price per barrel of oil equivalent (boe) stood at $42.46, a 19% decrease from the $52.37 per boe realized in the fourth quarter of 2024. For the full year 2025, the average realized price was $47.01 per boe, down 14% from $54.83 per boe in 2024. Despite the price pressures, the company’s oil and gas production averaged 2.375 million barrels of oil equivalent per day. After accounting for acquisitions and dispositions, production saw an increase of 57,000 boed, or 2.5%, compared to 2024.
Looking ahead, ConocoPhillips is targeting a $1 billion reduction in its capital and operating costs for 2026. This strategic move aims to bolster financial resilience in the current market environment. The company reiterated its guidance for 2026 capital expenditures at approximately $12 billion and adjusted operating costs at $10.2 billion. ConocoPhillips also highlighted its commitment to shareholder returns, having distributed $9.0 billion in 2025, representing 45% of its cash flow from operations, through share repurchases and dividends. The company anticipates delivering an estimated $7 billion in incremental free cash flow by 2029.