Stock Analysis on Net

ConocoPhillips (NYSE:COP)

$24.99

Analysis of Property, Plant and Equipment

Microsoft Excel

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Property, Plant and Equipment Disclosure

ConocoPhillips, balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Proved properties
Unproved properties
Other
Gross properties, plants and equipment
Accumulated depreciation, depletion and amortization
Net properties, plants and equipment

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Average age ratio

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Accumulated depreciation, depletion and amortization
Gross properties, plants and equipment
Asset Age Ratio
Average age1

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.