ConocoPhillips (NYSE: COP) reported on Thursday slightly better-than-expected earnings for the first quarter, as higher oil and gas production volumes more than offset lower prices and increased operating costs.
ConocoPhillips booked adjusted earnings of $2.7 billion, or $2.09 per share, for the first quarter, up from adjusted earnings of $2.4 billion, or $2.03 per share, for the same period of 2024. The EPS also beat the analyst consensus estimate of $2.05 compiled by The Wall Street Journal.
ConocoPhillips completed the acquisition of Marathon Oil at the end of 2024, which expanded its presence in the Permian, Eagle Ford, Anadarko, and Bakken shale basins.
For the first quarter, ConocoPhillips produced 2.389 million barrels of oil equivalent per day (boed), up by 487,000 boed compared to the same quarter last year.
After adjusting for closed acquisitions and dispositions, first-quarter 2025 production increased by 115,000 boed, or by 5%, from the same period a year ago.
ConocoPhillips’ Lower 48 delivered production stood at 1.462 million boed, including 816,000 boed from the Permian, 379,000 boed from the Eagle Ford, and 212,000 boed from the Bakken.
For the second quarter, ConocoPhillips expects its production to be between 2.34 million boed and 2.38 million boed.
The large independent producer, however, lowered its full-year 2025 capital expenditures guidance to $12.3 billion-$12.6 billion, down from the previous guidance of approximately $12.9 billion.
Full-year adjusted operating cost guidance is also lowered—to $10.7 billion-$10.9 billion versus prior guidance of $10.9 billion to $11.1 billion.
Other major listed shale producers, including Diamondback Energy, have also revised down their capital expenditure.
“Given recent weakness in commodity prices, the Company is reducing its activity levels and lowering its capital budget to prioritize free cash generation,” Diamondback Energy said as it slashed its capital budget for operated drilling and completion to a range of $2.78 billion – $3.09 billion, down from $3.13 billion – $3.44 billion.
By Charles Kennedy for Oilprice.com
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