Stock Analysis on Net

ConocoPhillips (NYSE:COP) 

Analysis of Debt

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Total Debt (Carrying Amount)

ConocoPhillips, balance sheet: debt

US$ in millions

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Short-term debt 1,200  619  105  112  2,575 
Long-term debt 18,734  14,750  14,790  14,856  17,128 
Total debt, including finance leases (carrying amount) 19,934  15,369  14,895  14,968  19,703 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Debt item Description The company
Total debt, including finance leases (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. ConocoPhillips total debt increased from 2019 to 2020 and from 2020 to 2021.

Total Debt (Fair Value)

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Dec 31, 2021
Selected Financial Data (US$ in millions)
Debt, excluding finance leases 22,451 
Finance leases 1,261 
Total debt, including finance leases (fair value) 23,712 
Financial Ratio
Debt, fair value to carrying amount ratio 1.19

Based on: 10-K (reporting date: 2021-12-31).


Weighted-average Interest Rate on Debt

Weighted-average interest rate on debt: 5.26%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
2.40% 329 
7.65% 78 
3.35% 426  14 
8.20% 134  11 
3.35% 199 
6.88% 67 
4.95% 1,250  62 
7.80% 203  16 
3.75% 981  37 
3.75% 19 
4.30% 973  42 
4.30% 27 
7.38% 92 
7.00% 200  14 
6.95% 1,549  108 
8.13% 390  32 
2.40% 489  12 
2.40% 11  — 
7.20% 575  41 
7.25% 500  36 
7.40% 500  37 
5.90% 505  30 
4.15% 246  10 
5.95% 500  30 
5.95% 645  38 
5.90% 600  35 
6.50% 2,750  179 
4.30% 750  32 
5.95% 500  30 
7.90% 60 
4.88% 800  39 
4.85% 590  29 
4.85% 10  — 
1.12% 500 
0.15% 265  — 
0.12% 18  — 
3.24% 1,261  41 
Total 18,992  999 
5.26%

Based on: 10-K (reporting date: 2021-12-31).

1 US$ in millions

2 Weighted-average interest rate = 100 × 999 ÷ 18,992 = 5.26%


Interest Costs Incurred

ConocoPhillips, interest costs incurred

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Interest expensed 884  806  778  735  1,098 
Interest capitalized 62  55  57  170  119 
Interest incurred 946  861  835  905  1,217 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Debt item Description The company
Interest expensed Amount of the cost of borrowed funds accounted for as interest expense for debt. ConocoPhillips interest expensed increased from 2019 to 2020 and from 2020 to 2021.
Interest capitalized Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. ConocoPhillips interest capitalized decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Interest incurred Total interest costs incurred during the period and either capitalized or charged against earnings. ConocoPhillips interest incurred increased from 2019 to 2020 and from 2020 to 2021.

Adjusted Interest Coverage Ratio

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income (loss) attributable to ConocoPhillips 8,079  (2,701) 7,189  6,257  (855)
Add: Net income attributable to noncontrolling interest —  46  68  48  62 
Add: Income tax expense 4,633  (485) 2,267  3,668  (1,822)
Add: Interest and debt expense 884  806  778  735  1,098 
Earnings before interest and tax (EBIT) 13,596  (2,334) 10,302  10,708  (1,517)
 
Interest incurred 946  861  835  905  1,217 
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 15.38 -2.90 13.24 14.57 -1.38
Adjusted interest coverage ratio (with capitalized interest)2 14.37 -2.71 12.34 11.83 -1.25

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest and debt expense
= 13,596 ÷ 884 = 15.38

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest incurred
= 13,596 ÷ 946 = 14.37


Solvency ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). ConocoPhillips adjusted interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.