Analysis of Property, Plant and Equipment
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Net Profit Margin since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
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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: 2025-12-31), 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).
Over the five-year period, significant changes are observed in the composition and net value of property, plant, and equipment. A consistent increase is noted in proved properties, while unproved properties exhibit more volatility. The overall trend in net property, plant, and equipment is upward, though with a notable deceleration in the most recent year.
- Proved Properties
- Proved properties demonstrate a steady and substantial increase from US$114,274 million in 2021 to US$167,969 million in 2025. This represents a cumulative growth of approximately 47.0%. The largest year-over-year increase occurred between 2022 and 2023, suggesting potentially significant investment or revaluation during that period.
- Unproved Properties
- Unproved properties experienced a decrease from US$10,993 million in 2021 to US$5,206 million in 2023, indicating a reduction in investment in exploratory or undeveloped assets. However, a substantial increase to US$15,490 million occurred in 2024, followed by a decrease to US$10,822 million in 2025. This volatility suggests a cyclical pattern of investment and potential write-downs or re-evaluations.
- Gross Properties, Plants and Equipment
- Gross properties, plants, and equipment generally increased, moving from US$129,646 million in 2021 to US$183,635 million in 2025. The rate of increase accelerated between 2023 and 2024, driven primarily by the increase in proved properties. The growth rate slowed considerably between 2024 and 2025.
- Accumulated Depreciation, Depletion and Amortization
- Accumulated depreciation, depletion, and amortization consistently increased throughout the period, rising from US$64,735 million in 2021 to US$90,396 million in 2025. This is expected with the addition of new assets and the passage of time. The increase between 2023 and 2024 was particularly significant, coinciding with the substantial increase in gross properties.
- Net Properties, Plants and Equipment
- Net properties, plants, and equipment increased from US$64,911 million in 2021 to US$93,239 million in 2025. While generally trending upward, the growth rate decelerated significantly in 2025, increasing by only US$106 million compared to the US$24,312 million increase observed between 2023 and 2024. This slowdown may warrant further investigation to determine the underlying causes, such as reduced capital expenditure or increased impairment charges.
The composition of property, plant, and equipment is shifting towards a greater proportion of proved properties, suggesting a focus on developing existing reserves. The fluctuations in unproved properties indicate a dynamic approach to exploration and development. The deceleration in net property, plant, and equipment growth in the latest year is a key observation that requires further scrutiny.
Asset Age Ratios (Summary)
ConocoPhillips, asset age ratios
Based on: 10-K (reporting date: 2025-12-31), 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).
The average age ratio exhibits a generally increasing trend over the observed period, followed by a notable decrease and subsequent partial recovery. This suggests evolving investment and depreciation patterns within the company’s property, plant, and equipment.
- Overall Trend
- From 2021 to 2023, the average age ratio increased steadily, moving from 49.93% to 51.49%. This indicates a gradual aging of the asset base during this timeframe. However, a significant decline occurred in 2024, with the ratio falling to 46.21%. The ratio then increased in 2025 to 49.23%, partially offsetting the prior year’s decrease.
- Year-over-Year Changes
- The period between 2022 and 2023 saw an increase of 0.74 percentage points in the average age ratio. The most substantial change occurred between 2023 and 2024, with a decrease of 5.28 percentage points. The subsequent change from 2024 to 2025 was an increase of 3.02 percentage points.
- Potential Implications
- The increase in the average age ratio from 2021 to 2023 could suggest limited capital expenditure on new assets during this period, or a slower rate of asset disposal compared to acquisition. The sharp decrease in 2024 likely reflects substantial investment in newer property, plant, and equipment, potentially through significant acquisitions or internal capital projects, or accelerated asset disposals. The increase in 2025 suggests a moderation of these investment or disposal activities.
Further investigation into capital expenditure, asset disposal, and depreciation policies would be necessary to fully understand the drivers behind these fluctuations in the average age ratio.
Average Age
Based on: 10-K (reporting date: 2025-12-31), 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).
2025 Calculations
1 Average age = 100 × Accumulated depreciation, depletion and amortization ÷ Gross properties, plants and equipment
= 100 × ÷ =
An examination of the financial information reveals increasing investment in property, plant, and equipment alongside a fluctuating average age ratio. Accumulated depreciation, depletion, and amortization consistently increased over the five-year period, while gross properties, plants, and equipment experienced substantial growth, particularly between 2023 and 2024.
- Gross Properties, Plants, and Equipment
- Gross properties, plants, and equipment increased from US$129,646 million in 2021 to US$183,635 million in 2025. The most significant increase occurred between 2023 and 2024, rising from US$144,405 million to US$175,428 million, indicating a period of substantial capital expenditure. Growth continued, albeit at a slower pace, into 2025.
- Accumulated Depreciation, Depletion, and Amortization
- Accumulated depreciation, depletion, and amortization demonstrated a consistent upward trend, increasing from US$64,735 million in 2021 to US$90,396 million in 2025. This increase is expected given the growth in gross properties, plants, and equipment, and reflects the ongoing consumption of the economic benefits of those assets.
- Average Age Ratio
- The average age ratio exhibited some volatility. It increased from 49.93% in 2021 to 51.49% in 2023, suggesting a gradual aging of the asset base. However, a notable decrease to 46.21% was observed in 2024, likely attributable to the significant additions to gross properties, plants, and equipment during that year. The ratio then increased again to 49.23% in 2025, indicating a moderate aging trend resuming. The fluctuations suggest that asset additions are impacting the overall age profile, but the ratio remains relatively stable within a narrow range.
The combination of increasing gross properties, plants, and equipment and rising accumulated depreciation suggests ongoing investment in maintaining and expanding operational capacity. The average age ratio’s behavior indicates a dynamic asset base, with recent investments partially offsetting the aging effect of existing assets.