November 6, 2025 – Reuters – ConocoPhillips (COP.N), the largest independent U.S. oil and gas producer, reported stronger-than-expected third-quarter earnings on Thursday, prompting the company to increase its quarterly dividend and raise its full-year production guidance. The results were driven by higher output and lower operational costs, which offset weaker global oil prices.
Shares of ConocoPhillips rose 1.5% in premarket trading following the announcement, reflecting investor confidence in the company’s cost-cutting measures and strategic acquisitions.
Third-Quarter Earnings Beat Expectations
ConocoPhillips posted an adjusted profit of $1.61 per share for the quarter ended September 30, exceeding analysts’ average estimate of $1.43 per share, according to LSEG data. The results were supported by stronger contributions from U.S. onshore oilfields, including the Delaware and Eagle Ford basins, as well as improved efficiency and cost savings initiatives.
The company cited a 13% year-over-year decline in Brent crude prices, which was largely offset by higher production and more than $1 billion in projected cost savings from its 2024 acquisition of Marathon Oil. The $22.5 billion deal expanded ConocoPhillips’ U.S. shale portfolio and added assets in the Anadarko Basin and Equatorial Guinea, enhancing the company’s global footprint.
Production and Operational Updates
Production for the third quarter reached 2.4 million barrels of oil equivalent per day (boepd), up 482,000 boepd from the same period a year earlier. Looking ahead, ConocoPhillips expects Q4 output of 2.30–2.34 million boepd, with a full-year 2025 production forecast raised to 2.375 million boepd from a previous range of 2.35–2.37 million boepd.
The company also lowered its 2025 operating cost forecast to $10.6 billion, down from a previous estimate of up to $10.9 billion, demonstrating effective cost management amid fluctuating oil prices.
Dividend Hike and Capital Spending Outlook
Reflecting confidence in its cash flow, ConocoPhillips increased its quarterly dividend by 8% to $0.84 per share. The company’s preliminary outlook for 2026 includes approximately $12 billion in capital spending, $10.2 billion in operating costs, and up to 2% underlying production growth.
ConocoPhillips plans to advance several large-scale projects, including Alaska’s Willow development and U.S. Gulf Coast LNG ventures, which are expected to contribute to growth and strengthen the company’s long-term production profile.
Strategic Initiatives and Market Position
The combination of strong U.S. onshore production, strategic acquisitions, and operational efficiency positions ConocoPhillips as a leading player in the independent oil and gas sector. The company continues to focus on streamlining operations, controlling costs, and expanding production in high-margin assets, which is key to navigating market volatility and maintaining shareholder returns.
Analysts note that ConocoPhillips’ disciplined approach to capital allocation and cost reduction could serve as a model for other energy companies seeking to maintain profitability in a low-price oil environment.
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