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• Production: 2,389,000 barrels of oil equivalent per day, exceeding guidance.

• Lower 48 Production: 1,462,000 barrels per day, with 816,000 in the Permian, 379,000 in the Eagle Ford, and 212,000 in the Bakken.

• Adjusted Earnings: $2.09 per share.

• Cash from Operations (CFO): $5.5 billion, including $200 million from APLNG distributions.

• Capital Expenditures: $3.4 billion.

• Return of Capital: $2.5 billion to shareholders, including $1.5 billion in buybacks and $1 billion in dividends.

• Cash and Investments: $7.5 billion in cash and short-term investments, plus $1 billion in long-term liquid investments.

• Full-Year Production Guidance: Unchanged, with low single-digit growth expected.

• Capital Spending Guidance: Reduced to $12.3 billion to $12.6 billion, down from $12.9 billion.

• Adjusted Operating Costs: Lowered by $200 million to $10.7 billion to $10.9 billion.

• APLNG Distributions: Expected to be $800 million for the year, with $600 million in the third quarter.

• Warning! GuruFocus has detected 3 Warning Sign with COP.

Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ConocoPhillips (NYSE:COP) exceeded the high end of its production guidance for the first quarter, producing 2,389,000 barrels of oil equivalent per day.

• The company successfully integrated Marathon Oil ahead of schedule, finding additional opportunities to enhance capital efficiency and reduce costs.

• ConocoPhillips (NYSE:COP) reduced its capital spending guidance by $0.5 billion and operating costs by $200 million while maintaining its production guidance.

• The company returned $2.5 billion to shareholders in the first quarter, consistent with its long-term track record of distributing 45% of its annual cash flow from operations.

• ConocoPhillips (NYSE:COP) has a deep, durable, and diverse portfolio with decades of high-quality, low-cost supply inventory, positioning it well for long-term free cash flow growth.

Negative Points

• The macro environment is marked by uncertainty and volatility, with revised lower outlooks for global economic growth and oil demand.

• OPEC Plus is unwinding voluntary cuts quicker than expected, leading to softened oil prices relative to the first quarter.

• The company's full-year effective corporate tax rate is expected to be higher than prior guidance due to geographic income mix.

• Full-year APLNG distributions are expected to be lower than initially anticipated, primarily due to lower pricing.

• ConocoPhillips (NYSE:COP) anticipates a modest use of cash on a full-year basis due to normal timing of tax payments and unwinding of first-quarter working capital tailwinds.