ConocoPhillips reported third‑quarter 2025 results that exceeded analyst expectations, delivering adjusted earnings per share of $1.61 versus a consensus of $1.40–$1.41, a beat of $0.21 or 15%. Total revenue rose to $15.03 billion, up 3.5% from $14.55 billion in the same quarter last year, driven by a 4.8% increase in the Lower 48 upstream segment and a 2.1% lift in the offshore Australia segment. The company also raised its full‑year 2025 production guidance to 2.375 MMBOED from 2.300 MMBOED, reflecting confidence in ongoing upstream momentum.
The earnings beat was largely a result of disciplined cost management and a favorable production mix. ConocoPhillips’ operating costs fell 2.3% to $10.6 billion, while production grew 25% to 2,399 MBOED, offsetting a 14% decline in the average realized price per BOE. The company’s focus on high‑margin assets in the Lower 48 and the successful completion of the Essington‑1 well in the Otway Basin helped maintain margins despite lower commodity prices.
On November 16, ConocoPhillips announced that its maiden exploration well, Essington‑1, had identified gas‑bearing intervals in the Waarre A and Waarre C sandstones of the Otway Basin, offshore Victoria. The discovery, the first in the region in four years, was made by the company’s 51% operator, with Korea National Oil Corporation and 3D Energi holding 29% and 20% stakes, respectively. The find adds a new offshore gas asset to ConocoPhillips’ portfolio at a time when Australia is seeking to replace declining legacy fields to meet domestic demand.
The discovery positions ConocoPhillips to potentially supply new domestic gas to the east coast of Australia, where legacy fields are depleting and supply shortages are expected by the late 2020s. The company plans a second exploration well in the Otway Basin to begin drilling in December, aimed at confirming reservoir performance and assessing commercial viability. Management highlighted that the Otway Basin remains a high‑potential area, and the new discovery strengthens the company’s long‑term gas production strategy.
ConocoPhillips’ management reiterated confidence in its 2025 outlook, noting that the raised production guidance reflects strong upstream execution and that capital expenditures for 2025 will remain below $12 billion. For 2026, the company projected $12 billion in capex and $10.2 billion in adjusted operating costs, with a modest 0–2% underlying production growth. CEO Ryan Lance emphasized that the company’s focus on cost discipline and strategic investments, such as the Willow project, will support continued profitability and shareholder returns.
The market reaction to the earnings and discovery was positive, driven by the earnings beat, revenue beat, and an 8% increase in the quarterly ordinary dividend. Analysts noted that the company’s ability to grow production while managing costs in a lower‑price environment signals resilience and positions ConocoPhillips well for future growth opportunities.
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