Stock Analysis on Net
Stock Analysis on Net

ConocoPhillips (NYSE:COP)

Common-Size Income Statement 

ConocoPhillips, common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Sales and other operating revenues 100.00 100.00 100.00 100.00 100.00
Equity in earnings of affiliates 2.26 3.11 3.06 2.65 1.82
Gain on dispositions 1.24 0.09 0.41 1.37 1.06
Interest income 0.53 0.73 0.73 0.25 0.07
Gain on investment in Cenovus Energy 0.00 0.00 0.00 0.32 2.27
Other, net 0.39 0.09 0.13 0.07 0.28
Other income 0.91% 0.83% 0.86% 0.64% 2.63%
Revenues and other income 104.42% 104.03% 104.33% 104.67% 105.50%
Purchased commodities -37.87 -36.55 -39.14 -43.28 -39.62
Production and operating expenses -17.53 -15.99 -13.70 -8.93 -12.42
Selling, general and administrative expenses -1.51 -2.12 -1.26 -0.79 -1.57
Exploration expenses -0.69 -0.65 -0.71 -0.72 -0.75
Depreciation, depletion and amortization -19.51 -17.53 -14.73 -9.56 -15.73
Impairments -0.04 -0.15 -0.02 0.02 -1.47
Taxes other than income taxes -3.64 -3.81 -3.69 -4.29 -3.57
Accretion on discounted liabilities -0.64 -0.59 -0.50 -0.32 -0.53
Operating income 22.97% 26.64% 30.57% 36.80% 29.84%
Interest and debt expense -1.45 -1.43 -1.39 -1.03 -1.93
Foreign currency transaction gain (loss) -0.02 0.09 -0.16 0.13 0.05
Other expenses -0.03 -0.33 0.00 0.06 -0.22
Income before income taxes 21.47% 24.97% 29.01% 35.96% 27.74%
Income tax provision -7.92 -8.09 -9.50 -12.16 -10.11
Net income 13.55% 16.89% 19.52% 23.80% 17.63%

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 common-size income statement reveals several noteworthy trends between 2021 and 2025. Revenues and other income consistently represent over 100% of sales and other operating revenues, fluctuating between 104.33% and 105.50% over the period. While initially stable, operating income demonstrates a declining trend, and net income experiences a more pronounced decrease throughout the observed timeframe.

Revenue Composition
Equity in earnings of affiliates increased from 1.82% to 3.06% between 2021 and 2023, before decreasing to 2.26% in 2025. Gain on dispositions decreased significantly from 1.06% in 2021 to 0.09% in 2024, with a slight recovery to 1.24% in 2025. Interest income showed a substantial increase from 0.07% to 0.73% between 2021 and 2023, then decreased to 0.53% in 2025. A notable gain on investment in Cenovus Energy was recorded in 2021 (2.27%) and 2022 (0.32%), but was absent in subsequent years.
Cost of Goods Sold and Operating Expenses
Purchased commodities, as a percentage of sales, remained consistently negative, ranging from -36.55% to -43.28%. Production and operating expenses increased in magnitude from -8.93% in 2022 to -17.53% in 2025. Selling, general and administrative expenses also increased, moving from -0.79% to -1.51% over the same period. Depreciation, depletion, and amortization exhibited a similar upward trend, increasing from -9.56% to -19.51%. These increasing expense percentages contribute to the observed decline in operating income.
Profitability
Operating income decreased steadily from 29.84% in 2021 to 22.97% in 2025. Income before income taxes followed a similar pattern, declining from 27.74% to 21.47%. Net income experienced the most significant decrease, falling from 17.63% in 2021 to 13.55% in 2025. The income tax provision as a percentage of sales decreased from -10.11% to -7.92% over the period, but this decrease did not offset the decline in income before taxes.
Other Items
Interest and debt expense remained relatively stable, fluctuating between -1.03% and -1.45%. Accretion on discounted liabilities also remained consistent, with a slight increase from -0.32% to -0.64%. Impairments were minimal, with a negative impact in 2021 and 2023, and a small negative impact in 2024 and 2025.

In summary, while revenues remained relatively stable, increasing operating and production expenses, coupled with a decline in certain gains, contributed to a consistent decrease in operating income and net income over the five-year period. The composition of revenue sources also shifted, with a reduced reliance on gains from dispositions and a fluctuating contribution from equity earnings.

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