ConocoPhillips Q2 2025 Earnings: EPS Surpasses Expectations, Revenue Falls Short

ConocoPhillips reported Q2 2025 earnings with revenue of $14.3 billion, up 2.1% YoY, but net income fell 15% to $1.96 billion. Profit margin decreased to 14% from 17% in Q2 2024 due to higher expenses. EPS beat expectations at $1.56, down from $1.99 in Q2 2024. The company's shares are up 1.1% from last week.

ConocoPhillips (NYSE: COP) reported its second-quarter 2025 earnings on July 2, 2025, with revenue of $14.3 billion, an increase of 2.1% year-over-year (YoY). However, net income fell by 15% to $1.96 billion. The company's earnings per share (EPS) were $1.56, down from $1.99 in the same period last year. The profit margin decreased to 14% from 17% in Q2 2024, primarily due to higher expenses.

The company's shares are up 1.1% from last week, reflecting investor confidence in the company's strategic initiatives. ConocoPhillips' management highlighted the integration of Marathon Oil, which has contributed to significant synergies and cost reductions. The company is also focusing on incremental cost reductions and margin enhancements, aiming to achieve more than $1 billion in savings by the end of 2026.

Key highlights from the Q2 2025 earnings report include:
- Total production of 2,391 thousand barrels of oil equivalent per day (MBOED), an increase of 446 MBOED from the same period last year.
- Lower 48 production of 1,508 MBOED, with significant contributions from the Permian, Eagle Ford, and Bakken regions.
- Cash provided by operating activities of $3.5 billion, with cash from operations (CFO) of $4.7 billion.
- Declared a third-quarter ordinary dividend of $0.78 per share.

ConocoPhillips' shares are trading at $105.50, up 1.1% from last week's close. The company's forward-looking statements indicate that it expects third-quarter 2025 production to be 2.33 to 2.37 million barrels of oil equivalent per day (MMBOED) and full-year production to be 2.35 to 2.37 MMBOED. The company's effective tax rate for the full year is expected to be in the mid-to-high 30% range.

References:
[1] https://www.stocktitan.net/news/COP/conoco-phillips-announces-second-quarter-2025-results-and-quarterly-r0c843qi9y6b.html