Stock Analysis on Net
Stock Analysis on Net
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ConocoPhillips (NYSE:COP)

Analysis of Debt

Advanced level


Total Debt (Carrying Amount)

ConocoPhillips, balance sheet: debt

US$ in millions

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Short-term debt 105  112  2,575  1,089  1,427 
Long-term debt 14,790  14,856  17,128  26,186  23,453 
Total debt, including finance leases (carrying amount) 14,895  14,968  19,703  27,275  24,880 

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-23).

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’s total debt decreased from 2017 to 2018 and from 2018 to 2019.

Total Debt (Fair Value)

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Dec 31, 2019
Selected Financial Data (US$ in millions)
Debt, excluding finance leases 18,108 
Finance leases 720 
Total debt, including finance leases (fair value) 18,828 
Financial Ratio
Debt, fair value to carrying amount ratio 1.26

Based on: 10-K (filing date: 2020-02-18).


Weighted-average Interest Rate on Debt

Weighted-average interest rate on debt: 5.91%

Interest Rate Debt Amount1 Interest Rate × Debt Amount Weighted-average Interest Rate2
9.13% 123  11 
8.20% 134  11 
8.13% 390  32 
7.90% 60 
7.80% 203  16 
7.65% 78 
7.40% 500  37 
7.38% 92 
7.25% 500  36 
7.20% 575  41 
7.00% 200  14 
6.95% 1,549  108 
6.88% 67 
6.50% 2,750  179 
5.95% 645  38 
5.95% 500  30 
5.95% 500  30 
5.90% 505  30 
5.90% 600  35 
4.95% 1,250  62 
4.30% 750  32 
4.15% 246  10 
3.35% 426  14 
3.35% 199 
2.40% 329 
3.58% 500  18 
2.45% 18  — 
2.45% 265 
5.53% 720  40 
Total 14,674  868 
5.91%

Based on: 10-K (filing date: 2020-02-18).

1 US$ in millions

2 Weighted-average interest rate = 100 × 868 ÷ 14,674 = 5.91%


Interest Costs Incurred

ConocoPhillips, interest costs incurred

US$ in millions

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Interest expensed 778  735  1,098  1,245  920 
Interest capitalized 57  170  119  157  294 
Interest incurred 835  905  1,217  1,402  1,214 

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-23).

Debt item Description The company
Interest expensed Amount of the cost of borrowed funds accounted for as interest expense for debt. ConocoPhillips’s interest expensed decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.
Interest capitalized Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. ConocoPhillips’s interest capitalized increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.
Interest incurred Total interest costs incurred during the period and either capitalized or charged against earnings. ConocoPhillips’s interest incurred decreased from 2017 to 2018 and from 2018 to 2019.

Adjusted Interest Coverage Ratio

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income (loss) attributable to ConocoPhillips 7,189  6,257  (855) (3,615) (4,428)
Add: Net income attributable to noncontrolling interest 68  48  62  56  57 
Add: Income tax expense 2,267  3,668  (1,822) (1,971) (2,868)
Add: Interest and debt expense 778  735  1,098  1,245  920 
Earnings before interest and tax (EBIT) 10,302  10,708  (1,517) (4,285) (6,319)
 
Interest incurred 835  905  1,217  1,402  1,214 
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 13.24 14.57 -1.38 -3.44 -6.87
Adjusted interest coverage ratio (with capitalized interest)2 12.34 11.83 -1.25 -3.06 -5.21

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-23).

2019 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest and debt expense
= 10,302 ÷ 778 = 13.24

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest incurred
= 10,302 ÷ 835 = 12.34


Solvency ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). ConocoPhillips’s adjusted interest coverage ratio improved from 2017 to 2018 and from 2018 to 2019.