Analysis of Property, Plant and Equipment
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- Statement of Comprehensive Income
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Debt to Equity since 2005
- Price to Book Value (P/BV) since 2005
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Property, Plant and Equipment Disclosure
ConocoPhillips, balance sheet: property, plant and equipment
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Proved properties
- The value of proved properties shows a consistent upward trend over the five-year period, increasing from $94,312 million in 2020 to $155,364 million in 2024. This represents steady growth each year, with the largest annual increment occurring between 2023 and 2024.
- Unproved properties
- Unproved properties exhibited considerable volatility during the period. Starting at $4,141 million in 2020, the value rose sharply to $10,993 million in 2021, declined thereafter to $5,206 million in 2023, and surged again to $15,490 million in 2024. This pattern indicates fluctuating investment or reclassification activity in unproved assets.
- Other properties
- Values classified as 'Other' properties demonstrate a gradual increase from $3,653 million in 2020 to $4,805 million in 2023, followed by a slight decrease to $4,574 million in 2024. The overall movement is relatively stable compared to other categories.
- Gross properties, plants and equipment
- The gross value of properties, plants, and equipment increased steadily from $102,106 million in 2020 to $175,428 million in 2024. This reflects the cumulative effects of growth in both proved and unproved properties as well as other property values.
- Accumulated depreciation, depletion and amortization
- Accumulated depreciation, depletion, and amortization have steadily increased (in absolute value) from -$62,213 million in 2020 to -$81,072 million in 2024. This indicates a continuous recognition of asset consumption or usage over the years, consistent with the growth in gross asset base.
- Net properties, plants and equipment
- Net properties, plants, and equipment rose significantly from $39,893 million in 2020 to $94,356 million in 2024, displaying strong asset growth after accounting for accumulated depreciation. The increase was particularly marked between 2020 and 2021, and again between 2023 and 2024, mirroring the trends in proved properties and gross assets.
Asset Age Ratios (Summary)
ConocoPhillips, asset age ratios
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The analysis of the average age ratio of property, plant, and equipment over the five-year period reveals a generally declining trend, indicating a possible modernization or replacement of older assets.
- 2020 to 2021
- The average age ratio decreased significantly from 60.93% to 49.93%, representing a reduction of approximately 11 percentage points. This sharp decline suggests major asset retirements or upgrades during this period.
- 2021 to 2022
- The ratio remained relatively stable, with a slight increase from 49.93% to 50.67%. This minor uptick indicates a brief stabilization in the aging of assets, possibly due to slower acquisition or replacement rates.
- 2022 to 2023
- The average age ratio increased marginally again to 51.49%, continuing the trend of slight upward movement but still well below the 2020 level. This can point to a period of asset aging not fully offset by new investments.
- 2023 to 2024
- The ratio declined to 46.21%, marking the lowest value in the observed period. This significant drop suggests a renewed emphasis on asset renewal or acquisition of newer equipment, effectively reducing the average age of property, plant, and equipment.
Overall, the data indicates a strategic focus on managing asset age, with efforts concentrated on reducing the average age ratio after 2020, interrupted by short periods of marginal increases. The continued decrease in the latter years reflects an ongoing commitment to maintaining a modern asset base.
Average Age
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 Average age = 100 × Accumulated depreciation, depletion and amortization ÷ Gross properties, plants and equipment
= 100 × ÷ =
- Accumulated Depreciation, Depletion, and Amortization
- The accumulated depreciation, depletion, and amortization exhibited a steady upward trend over the five-year period. Starting at approximately $62.2 billion in 2020, this figure increased annually, reaching about $81.1 billion by 2024. This consistent growth suggests ongoing depreciation of existing assets alongside continued asset acquisition and utilization.
- Gross Properties, Plants, and Equipment
- Gross properties, plants, and equipment demonstrated substantial growth across the analyzed years. The value rose from $102.1 billion in 2020 to $175.4 billion in 2024, with notable increases especially between 2020 and 2021, and again from 2023 to 2024. This upward trend reflects significant capital investment and expansion in fixed assets during this timeframe.
- Average Age Ratio
- The average age ratio showed a generally decreasing trend, moving from 60.93% in 2020 down to 46.21% in 2024. There was a marked decline from 2020 to 2021, followed by relatively minor fluctuations until a more pronounced decrease in the last year. This reduction in average age ratio indicates a relatively younger asset base in later years, likely attributable to increased asset additions and modernization efforts.
- Summary of Trends
- Overall, the data reflects a company actively investing in property, plant, and equipment, as evidenced by the rising gross asset values and accumulated depreciation. The decreasing average age ratio suggests these investments are contributing to a rejuvenation of the asset portfolio. The combination of increased gross assets and accumulated depreciation is consistent with asset growth accompanied by systematic asset consumption over time.