COP Beats Q3 Earnings Estimates, Hikes '25 Production Guidance

ConocoPhillips COP has reported third-quarter 2025 adjusted earnings per share of $1.61, which beat the Zacks Consensus Estimate of $1.40. The bottom line decreased from the prior-year level of $1.78.

One of the world’s leading independent oil and gas producers, headquartered in Houston, TX, ConocoPhillips’ quarterly revenues of $15.5 billion increased from $13.6 billion in the year-ago period. The top line also surpassed the Zacks Consensus Estimate of $14.6 billion.

Better-than-expected quarterly earnings can be attributed to higher oil-equivalent production volumes. The positives were partially offset by lower average realized oil-equivalent prices and increased expenses.

ConocoPhillips Price, Consensus and EPS Surprise

 

ConocoPhillips price-consensus-eps-surprise-chart | ConocoPhillips Quote

Production

Total production averaged 2,399 thousand barrels of oil-equivalent per day (MBoe/d), up from the year-ago quarter’s 1,917 MBoe/d. The figure also beat our estimate of 2,343 MBoe/d. Of the total output, 47.8% was crude oil. Overall production was higher than the year-ago level due to increased production in Europe, the Middle East and North Africa, and the Asia Pacific.

Crude oil production increased to 1,146 thousand barrels per day (MBbls/d) from the year-ago quarter’s 957 MBbls/d. The figure also beat our estimate of 1,122.3 MBbls/d.

Natural gas liquids’ production totaled 436 MBbls/d, higher than the year-ago figure of 310 MBbls/d and surpassing our estimate of 358.1 MBbls/d. Bitumen production for the quarter totaled 123 MBbls/d, up from 87 MBbls/d in the year-ago quarter.

The company’s natural gas production was 4,167 million cubic feet per day (MMcf/d), higher than the year-ago level of 3,381 MMcf/d.

Realized Prices

The average realized oil equivalent price decreased to $46.44 per barrel from $54.18 a year ago.

The average realized crude oil price was $66.13 per barrel, implying a decrease from $76.77 reported a year ago. The figure also lagged our projection of $67.07 per barrel.

The average realized natural gas price was $4.28 per thousand cubic feet, down from $4.42 in the year-ago quarter. Realized natural gas liquids price decreased to $19.20 per barrel from the year-ago quarter’s $21.93.

Total Expenses

Expenses increased to $12.6 billion from $10.4 billion in the corresponding period of 2024. The figure also surpassed our projection of $11.5 billion. The cost of purchased commodities increased to $5.9 billion from $4.8 billion a year ago.

Exploration costs marginally increased to $71 million from $70 million in the comparable period of 2024.

Balance Sheet & Capital Spending

As of Sept. 30, 2025, ConocoPhillips had $5.3 billion in cash and cash equivalents. The company had a total long-term debt of $22.5 billion and a short-term debt of $1.02 billion as of the same date.

Capital expenditure and investments totaled $2.87 billion. Net cash provided by operating activities was $5.9 billion.

Guidance

For the fourth quarter of 2025, COP expects production of 2.30 to 2.34 MBoe/d. The full-year production is anticipated to be 2.375 2.375 MMBoe/d, indicating an increase from the previously mentioned 2.35-2.37 MMBoe/d.

The company reduced its full-year adjusted operating cost guidance to $10.6 billion from the previously stated $10.7-$10.9 billion.

Additionally, the company issued the preliminary 2026 guidance, indicating capital expenditure of $12 billion, which is $0.5 billion lower than the midpoint of its 2025 guidance. Adjusted operating costs for 2026 are expected to be $10.2 billion, suggesting a $0.4 billion decrease from the 2025 guidance. The company also anticipates underlying production between flat and 2% growth.

COP’s Zacks Rank & Key Picks

Currently, COP carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Oceaneering International, Inc. OII and Weatherford International WFRD, each sporting a Zacks Rank #1 (Strong Buy), and Vista Energy S.A.B. de C.V. VIST, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Oceaneering reported an adjusted profit of 55 cents per share for the third quarter of 2025, beating the Zacks Consensus Estimate of 42 cents. Moreover, the bottom line surpassed the year-ago quarter’s profit of 36 cents.

As of Sept. 30, 2025, OII had cash and cash equivalents worth $506 million and $497.5 million, respectively, along with a long-term debt of about $486 million. The debt-to-total capital was 34.7%. OII has a Zacks VGM Score of A.

Vista Energy registered third-quarter 2025 adjusted earnings per share of $1.48, which beat the Zacks Consensus Estimate of $1.24. The bottom line also improved from the prior-year quarter’s 55 cents.

As of Sep. 30, 2025, Vista Energy had $319.7 million in cash, bank balances and other short-term investments. The company's gross financial debt stood at $2.92 billion as of the same date. VIST has a Zacks Style Score of A for Value.

Weatherford International provides oil field services and equipment. The company offers drilling solutions, gas well unloading, restoration and other related activities.

The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, delivering an average surprise of 29.46%. WFRD has a Zacks Style Score of B for Value.

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This article originally published on Zacks Investment Research (zacks.com).

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