ConocoPhillips Reports Strong Q4 2025 Earnings

Energy firm highlights operational execution, balance sheet improvement, and free cash flow growth plan

Published on Feb. 7, 2026

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ConocoPhillips executives used the company's fourth-quarter 2025 earnings call to emphasize another year of strong operational execution, balance sheet improvement, and progress on a multi-year free cash flow growth plan. The company outperformed its major guidance drivers, grew production, reduced capital and costs, and returned $9 billion to shareholders in 2025. ConocoPhillips also highlighted progress on integrating Marathon Oil, asset sales, and an incremental $1 billion cost reduction initiative. For 2026, the company guided to lower capital spending and operating costs, with modest production growth expected.

Why it matters

ConocoPhillips' strong operational and financial performance in 2025, along with its forward-looking plans, demonstrate the company's ability to navigate market challenges and position itself for continued growth and shareholder returns. The integration of Marathon Oil and ongoing cost-cutting efforts also highlight ConocoPhillips' strategic focus on improving efficiency and profitability.

The details

Key highlights from the earnings call include: ConocoPhillips grew production by 2.5% in 2025 while reducing capital and costs; the company returned $9 billion to shareholders in 2025, equal to 45% of cash flow from operations; ConocoPhillips paid down $900 million of debt, increased cash balances by $1 billion, and reduced net debt by nearly $2 billion; the integration of Marathon Oil exceeded the company's acquisition case; ConocoPhillips closed over $3 billion in asset sales in 2025 and launched a $1 billion cost reduction initiative. For 2026, the company guided to $12 billion in capital spending, $10.2 billion in operating costs, and production of 2.23-2.26 million barrels of oil equivalent per day.

  • ConocoPhillips reported its fourth-quarter 2025 earnings on February 7, 2026.
  • The company expects its NFS LNG project to start up in the second half of 2026.
  • ConocoPhillips' Willow project is nearing 50% complete and remains on track for first oil in early 2029.

The players

ConocoPhillips

A Houston-based international energy company focused on exploration and production of oil and natural gas, formed in 2002 through the merger of Conoco Inc and Phillips Petroleum Company.

Ryan Lance

Chairman and CEO of ConocoPhillips.

William O'Brien

Executive Vice President and Chief Financial Officer of ConocoPhillips.

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What they’re saying

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— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

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What’s next

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The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.