ConocoPhillips reported its fourth-quarter 2025 financial and operational results, which included a profit decline and a production increase, alongside significant plans to reduce future spending.

Financial Performance

The company posted a net profit of $1.44 billion ($1.17 per share) for the quarter, representing a 37.5% decrease from the $2.31 billion ($1.90 per share) earned in the same period the previous year. This result missed analyst expectations, as adjusted earnings per share of $1.02 fell short of the $1.11 per share projection.

Operational Highlights and Guidance

Production rose by 6% year-over-year to 2.32 million barrels of oil equivalent per day (boepd). The majority of this output, 1.439 million boepd, came from the Lower 48 U.S. shale region, with significant contributions from specific basins:

• Delaware basin: 673,000 boepd
• Eagle Ford: 370,000 boepd
• Bakken: 198,000 boepd
• Midland basin: 194,000 boepd

For 2026, the company expects production to be between 2.33 million and 2.36 million boepd.

Strategic Plans and Outlook

Leadership highlighted that the company outperformed its 2025 guidance for production, capital, and costs while successfully integrating its acquisition of Marathon Oil. In response to falling crude prices, ConocoPhillips announced a strategic focus on reducing expenditures. The company plans to drive a $1 billion reduction in combined capital and operating costs for 2026. This is reflected in its formal guidance, which includes approximately $12 billion in capital expenditures and adjusted operating costs of $10.2 billion for the year.