ConocoPhillips aims to cut capital and operating costs by US$1 billion in 2026 after reporting lower fourth quarter earnings due to lower oil prices.
ConocoPhillips reported fourth-quarter adjusted earnings of US$1.3 billion, down 45.8 per cent from US$2.4 billion, for the fourth quarter of 2024.
The company attributed the decline to the impact of lower prices, only partially offset by higher volumes.
Full-year 2025 adjusted earnings were $7.7 billion, compared with full-year 2024 adjusted earnings of $9.2 billion.
Ryan Lance, CEO of ConocoPhillips said the company’s performance in 2025 was “strong” and outperformed its initial production, capital and cost guidance.
“Looking ahead, we’re focused on driving a $1 billion reduction in our capital and costs in 2026, while returning 45 per cent of our CFO to shareholders,” the CEO said.
“Our best-in-class asset base remains a distinct competitive advantage, with the deepest and most capital-efficient Lower 48 inventory and a diverse, global portfolio of advantaged major projects and legacy assets.
“We are well positioned to deliver an expected $7 billion in incremental free cash flow by 2029, including $1 billion each year from 2026 through 2028.”
Production for the fourth quarter was 2.320 million barrels of oil equivalent per day (BOED), an increase of 137,000 BOED from the same period a year ago.
Production for the full year was 2.375 million BOED, an increase of 388,000 BOED from the same period a year ago.
The company reiterated its guidance for 2026 capital expenditures of US$12 billion and adjusted operating costs of US$10.2 billion.
ConocoPhillips forecasts the 2026 output to be between 2.33 million and 2.36 million BOED.
First-quarter 2026 production is expected to be 2.30 to 2.34 million BOED, inclusive of weather-related downtime.
