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, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Sales and other operating revenues 100.00 100.00 100.00 100.00 100.00
Equity in earnings of affiliates 3.11 3.06 2.65 1.82 2.30
Gain on dispositions 0.09 0.41 1.37 1.06 2.92
Interest income 0.73 0.73 0.25 0.07 0.53
Gain (loss) on investment in Cenovus Energy 0.00 0.00 0.32 2.27 -4.55
Other, net 0.09 0.13 0.07 0.28 1.31
Other income (loss) 0.83% 0.86% 0.64% 2.63% -2.71%
Revenues and other income 104.03% 104.33% 104.67% 105.50% 102.51%
Purchased commodities -36.55 -39.14 -43.28 -39.62 -43.00
Production and operating expenses -15.99 -13.70 -8.93 -12.42 -23.13
Selling, general and administrative expenses -2.12 -1.26 -0.79 -1.57 -2.29
Exploration expenses -0.65 -0.71 -0.72 -0.75 -7.76
Depreciation, depletion and amortization -17.53 -14.73 -9.56 -15.73 -29.39
Impairments -0.15 -0.02 0.02 -1.47 -4.33
Taxes other than income taxes -3.81 -3.69 -4.29 -3.57 -4.01
Accretion on discounted liabilities -0.59 -0.50 -0.32 -0.53 -1.34
Operating income (loss) 26.64% 30.57% 36.80% 29.84% -12.74%
Interest and debt expense -1.43 -1.39 -1.03 -1.93 -4.29
Foreign currency transaction gain (loss) 0.09 -0.16 0.13 0.05 0.38
Other expenses -0.33 0.00 0.06 -0.22 -0.07
Income (loss) before income taxes 24.97% 29.01% 35.96% 27.74% -16.72%
Income tax (provision) benefit -8.09 -9.50 -12.16 -10.11 2.58
Net income (loss) 16.89% 19.52% 23.80% 17.63% -14.13%
Net income attributable to noncontrolling interests 0.00 0.00 0.00 0.00 -0.24
Net income (loss) attributable to ConocoPhillips 16.89% 19.52% 23.80% 17.63% -14.38%

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).

Revenues and Other Income Trends
The total revenues and other income as a percentage of sales remained relatively stable over the five-year period, fluctuating slightly between 102.51% and 105.5%. Notably, the share of equity in earnings of affiliates showed a gradual increase, rising from 2.3% in 2020 to 3.11% in 2024, indicating improved contributions from affiliated entities. Conversely, gains on dispositions displayed a steady decline from 2.92% in 2020 to 0.09% in 2024, suggesting diminishing benefits from asset sales or similar activities. Interest income increased moderately after a low point in 2021, stabilizing at 0.73% in the last two years.
Expense Analysis
Expenses as a percentage of sales revealed important variations. Purchased commodities decreased from -43% in 2020 to -36.55% in 2024, showing improved efficiency or lower input costs. Production and operating expenses initially decreased sharply from -23.13% to -8.93% by 2022, then climbed back to -15.99% by 2024, indicating some volatility in operational cost management. Selling, general and administrative expenses reduced significantly until 2022 but then increased again to -2.12% in 2024, suggesting possible variations in overhead management. Exploration expenses remained low and relatively stable, consistently below -1%, reflecting limited investment or cost control in exploration activities. Depreciation, depletion, and amortization followed a similar pattern to operating expenses, with a decline followed by an increase toward the end of the period. Impairments, previously negative and more pronounced in 2020, were essentially negligible or slightly positive in subsequent years.
Profitability and Income Metrics
Operating income showed a strong turnaround from a negative -12.74% in 2020 to a peak of 36.8% in 2022, followed by a declining trend to 26.64% in 2024, which still represents a significant improvement compared to 2020. Interest and debt expenses fell significantly from -4.29% to just below -1.5%, improving net profitability. Pre-tax income mirrored operating income trends, rising dramatically from -16.72% in 2020 to 35.96% in 2022 then moderating to 24.97% in 2024. Income tax provisions fluctuated with negative effects in 2021 and subsequent years, reducing overall net income. Net income attributable to the company followed a positive trend after the loss in 2020, peaking at 23.8% in 2022 and moderately declining to 16.89% in 2024, indicating sustained profitability but some margin compression in recent years.
Other Income and Expense Items
Other income (loss) showed a recovery from a loss of -2.71% in 2020 to positive values near 0.83% by 2024, reflecting improvement in miscellaneous income sources. The gain/loss on investment in Cenovus Energy was significantly negative in 2020 but became positive in 2021 and 2022 before data became unavailable in later years. Foreign currency transaction impacts and other expenses remained minor and varied without consistent trends.
Summary
Overall, the data indicate a company that experienced significant operational and financial improvements after 2020, achieving higher profitability and better cost control through 2022. However, from 2023 to 2024, there appears to be a slight reversal in some cost efficiency measures and profitability margins, although financial health remains substantially better than in 2020. The steady rise in equity earnings from affiliates and stable other income components contribute positively to income, while careful management of expenses and interest costs supports improved net income figures.