ConocoPhillips (NYSE:COP)

The financial data demonstrates fluctuations in current assets and adjusted current assets over the five-year period under review. Both categories exhibit an overall rising trend from 2020 to 2022, followed by a notable decline in 2023, and a partial recovery in 2024.

Current Assets

Starting at US$12,066 million in 2020, current assets increased significantly to US$16,050 million in 2021 and further to US$18,749 million in 2022. This upward trajectory suggests an expansion in liquid and short-term assets during these years. However, there is a noticeable contraction in 2023, where current assets fell to US$14,330 million, representing a decline of approximately 23.6% from the previous year. In 2024, a modest recovery occurred, with values rising to US$15,647 million, though still below the peak recorded in 2022.

Adjusted Current Assets

The adjusted current assets mirror the pattern observed in current assets, beginning at US$12,157 million in 2020. These assets rose to US$16,303 million in 2021 and US$18,900 million in 2022, indicating a similar expansion phase. In 2023, adjusted current assets decreased to US$14,424 million, aligning with the trend seen in unadjusted current assets, and then increased to US$15,767 million in 2024. Notably, adjusted current assets consistently present slightly higher values than unadjusted current assets, which may reflect the inclusion of certain reclassifications or adjustments.

The overall trend reveals two main phases: a period of asset growth from 2020 through 2022, followed by a contraction in 2023 and subsequent partial asset recovery in 2024. This pattern could be indicative of varying operational cash flows, inventory levels, or short-term receivables and payables management over the years. The alignment between current assets and adjusted current assets suggests that adjustments do not significantly alter the asset base but provide a refined perspective on liquidity position.

The financial data reveals a consistent upward trend in both total assets and adjusted total assets over the five-year period. Total assets increased from US$62,618 million at the end of 2020 to US$122,780 million by the end of 2024, nearly doubling in value. Similarly, adjusted total assets exhibited a comparable growth pattern, rising from US$62,346 million in 2020 to US$122,670 million in 2024.

The year-on-year increases demonstrate steady asset expansion, with no apparent declines or stagnation throughout the time span. This trend suggests an ongoing accumulation or acquisition of assets, possibly reflecting growth initiatives or investment activities undertaken by the company.

Notably, the difference between total assets and adjusted total assets remains very small and consistent across all years, implying that adjustments made to the asset values are minimal or stable. This consistency indicates reliability in the asset reporting and adjustments over time.

Overall, the data indicates robust asset growth and a stable asset base, which may support future operational capacity and financial strength.

The financial data demonstrates a consistent upward trend in total liabilities over the five-year period. Starting at 32,769 million US dollars at the end of 2020, total liabilities increased substantially each year, reaching 57,984 million US dollars by the end of 2024. This represents an overall increase of approximately 77% from 2020 to 2024.

Similarly, adjusted total liabilities, which may account for certain exclusions or adjustments in the total liabilities reported, show a generally increasing pattern. Beginning at 29,022 million US dollars in 2020, adjusted total liabilities rose to 46,558 million US dollars by the end of 2024. This indicates an increase of about 60% over the period.

Year-over-Year Changes in Total Liabilities

From 2020 to 2021, total liabilities rose sharply by 38% (an increase of approximately 12,486 million US dollars). The growth slowed significantly between 2021 and 2022, with an increase of only around 571 million US dollars (1.3%). Modest increases continued from 2022 to 2023 (around 819 million US dollars or 1.8%) before accelerating substantially again from 2023 to 2024, rising by 11,339 million US dollars (24.3%).

Year-over-Year Changes in Adjusted Total Liabilities

Adjusted total liabilities also increased sharply from 2020 to 2021, by about 34.7% (6,054 million US dollars). A mild decline occurred between 2021 and 2022, with adjusted liabilities dropping by approximately 976 million US dollars (2.5%). Another slight decrease occurred from 2022 to 2023, declining by 268 million US dollars (0.7%). However, from 2023 to 2024, adjusted total liabilities increased markedly by 8,726 million US dollars (23.1%).

Insights on Liability Adjustments

Throughout the period, the gap between total liabilities and adjusted total liabilities remains relatively consistent, with adjusted liabilities generally representing about 89% to 85% of total liabilities. The deviations suggest that the adjustments applied have a meaningful but not disproportionately large impact on total liabilities. The observed decreases in adjusted total liabilities during 2022 and 2023, despite total liabilities slightly increasing, may reflect management adjustments or reclassifications during that time.

Overall, the data indicates growing leverage or borrowing levels in the company over the five-year span, with particularly rapid increases towards the end of the period in 2024. The temporary dips or slower growth in adjusted liabilities in 2022 and 2023 may warrant further investigation to understand the underlying adjustments or operational factors. The rising liabilities should be considered in conjunction with asset growth and income trends to fully assess financial risk and covenant compliance.

The analysis of the equity data over the five-year period reveals a consistent and significant upward trend in both common stockholders’ equity and adjusted total equity.

Common Stockholders’ Equity

Starting at US$29,849 million at the end of 2020, common stockholders’ equity exhibited steady growth annually. By the end of 2021, it increased markedly to US$45,406 million, representing a considerable rise of over 50%. The growth continued more moderately in the following years, reaching US$48,003 million in 2022 and US$49,279 million in 2023. A more pronounced increase is observed in 2024, with common stockholders’ equity climbing to US$64,796 million, the highest value in the period analyzed.

Adjusted Total Equity

This measure followed a similar trajectory, beginning at US$33,324 million in 2020. It rose substantially by 54.6% to US$51,498 million in 2021. Subsequent increases were consistent but moderate, reaching US$55,639 million in 2022 and US$57,931 million in 2023. The adjusted total equity saw the most significant growth by the end of 2024, surging to US$76,112 million, reflecting a strong year-over-year increase.

Overall, the data indicates a robust strengthening of equity positions, likely reflecting retained earnings, capital injections, or valuation gains in assets. The accelerated growth in the final year suggests a potential strategic move or favorable market conditions enhancing shareholder value substantially. These positive trends enhance the company’s financial stability and capacity to support future operational or investment activities.

The analysis of the annual financial data reveals several notable trends in the company's debt, equity, and capital over the five-year period ending in 2024.

Total reported debt

The total reported debt shows a fluctuating but overall increasing trend. It rose significantly from 15,369 million US dollars in 2020 to 19,934 million in 2021, then decreased to 16,643 million in 2022. Afterward, it increased again to 18,937 million in 2023 and further surged to 24,324 million in 2024. This pattern suggests varying financing needs, with heightened borrowing particularly evident in 2021 and 2024.

Common stockholders’ equity

Common stockholders’ equity demonstrates a consistent upward trajectory throughout the period. Starting at 29,849 million US dollars in 2020, it gradually increased year-over-year, reaching 45,406 million in 2021, 48,003 million in 2022, 49,279 million in 2023, and culminating at 64,796 million in 2024. This steady growth indicates solid value creation and strengthening of the equity base over the years.

Total reported capital

Total reported capital, which aggregates debt and equity, follows an increasing trend as well. It rose from 45,218 million US dollars in 2020 to 65,340 million in 2021, then slightly decreased to 64,646 million the following year. Afterward, it increased steadily to 68,216 million in 2023 and climbed markedly to 89,120 million in 2024. This reflects an overall expansion in the company's capital structure, with pronounced growth in the last year studied.

Adjusted total debt

The adjusted total debt mirrors the pattern seen in total reported debt but at generally higher values, beginning at 16,154 million US dollars in 2020 and increasing to 20,601 million in 2021. It then declined to 17,188 million in 2022 before ascending again to 19,634 million in 2023 and reaching 25,348 million in 2024. The adjustment appears to factor in additional liabilities, reaffirming the trend of increased leverage, especially notable in the latter years.

Adjusted total equity

Adjusted total equity maintains a consistent increase through the period, starting at 33,324 million US dollars in 2020. It grew to 51,498 million in 2021, 55,639 million in 2022, 57,931 million in 2023, and peaked at 76,112 million in 2024. The steady growth pattern aligns with the unadjusted equity figures, indicating enhanced shareholder value and possibly retained earnings accumulation.

Adjusted total capital

Adjusted total capital, the sum of adjusted debt and equity, also exhibits a rising trend, starting at 49,478 million US dollars in 2020 and increasing annually to 72,099 million in 2021, 72,827 million in 2022, 77,565 million in 2023, and significantly reaching 101,460 million in 2024. The acceleration in 2024 suggests an expansion phase with increased funding, both from debt and equity sources.

Overall, the company’s financial data reflects growing capital resources, with equity showing a stable upward trend and debt levels fluctuating but generally increasing. The rise in both adjusted and reported capital in 2024 is particularly notable, implying strategic financial maneuvers likely related to expansion or investment activities. The balance between debt and equity appears maintained but leans toward increased leverage in recent years, which may warrant further examination regarding risk management and cost of capital considerations.

The financial data reveals significant fluctuations in both net income attributable to the company and adjusted net income over the five-year period under review.

Net Income (Loss) Attributable to ConocoPhillips

The net income was deeply negative in the initial year, with a loss of approximately $2.7 billion in 2020. A marked turnaround occurred in 2021, resulting in a substantial profit of around $8.1 billion. This positive trend continued in 2022, reaching a peak net income of $18.7 billion, which represents the highest value in the period. However, in 2023, the net income declined by roughly 41% from the previous year to $10.96 billion, and it further decreased to $9.25 billion in 2024, indicating a downward trend in profitability in the most recent years.

Adjusted Net Income (Loss)

The adjusted net income follows a similar trajectory to the reported net income but with some variations in magnitude. The adjusted figures show an even more pronounced loss in 2020 of approximately $3.43 billion, which transitions sharply to a profit of $9.86 billion in 2021. The adjusted net income then peaks in 2022 at nearly $19.6 billion, surpassing the net income by almost $1 billion. Thereafter, there is a decline to $12.37 billion in 2023, followed by a further reduction to $8.84 billion in 2024. This pattern indicates that while the company was highly profitable in the middle of the period, there has been a notable contraction in earnings adjusted for specific items in the last two years.

Overall, the financial results display a recovery from a significant loss in 2020 to robust profitability in 2021 and 2022, followed by a decline in earnings in the subsequent two years. The adjusted net income consistently exceeds the reported net income, suggesting the presence of adjustments that favorably impact reported performance. The diminishing profitability in 2023 and 2024 warrants attention, potentially reflecting changes in market conditions, operational challenges, or other factors influencing earnings.