ConocoPhillips reports lower-than-expected Q4 earnings, higher production

Investing.com -- ConocoPhillips reported fourth-quarter earnings that missed average analyst expectations. The oil company posted earnings per share (EPS) of $1.02, missing Wall Street expectations of $1.18.

Production in the quarter reached 2,320 thousand barrels of oil equivalent per day, up 137 MBOED from a year earlier. After adjusting for acquisitions and asset sales, output fell by 63 MBOED, or 2.6%, compared with the prior-year period. Cash flow from operations totaled $4.3 billion.

“ConocoPhillips delivered another year of strong performance in 2025, achieving our CFO-based return of capital target and growing our base dividend at a top-quartile S&P 500 rate, in line with our returns-focused value proposition," said CEO Ryan Lance.

“Looking ahead, we’re focused on driving a $1 billion reduction in our capital and costs in 2026, while returning 45% of our CFO to shareholders. We are well positioned to deliver an expected $7 billion in incremental free cash flow by 2029, including $1 billion each year from 2026 through 2028.”

The company reiterated its 2026 capital spending plan of about $12 billion, alongside adjusted operating costs of $10.2 billion, in line with its prior outlook.

ConocoPhillips guided for 2026 production of 2.33 to 2.36 million barrels of oil equivalent per day, with first-quarter output expected at 2.30 to 2.34 MMBOED, including the impact of weather-related downtime.

It expects depreciation, depletion and amortization of $11.7 billion to $11.9 billion next year, while adjusted corporate and other segment net losses are projected at roughly $0.9 billion, excluding special items.

The company said it plans to return 45% of cash flow from operations to shareholders in 2026, consistent with its long-term framework.

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