Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

ConocoPhillips, consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Sales and other operating revenues	58,944)	54,745)	56,141)	78,494)	45,828)
Equity in earnings of affiliates	1,335)	1,705)	1,720)	2,081)	832)
Gain on dispositions	731)	51)	228)	1,077)	486)
Interest income	311)	402)	412)	195)	33)
Gain on investment in Cenovus Energy	—)	—)	—)	251)	1,040)
Other, net	227)	50)	73)	58)	130)
Other income	538)	452)	485)	504)	1,203)
Revenues and other income	61,548)	56,953)	58,574)	82,156)	48,349)
Purchased commodities	(22,325)	(20,012)	(21,975)	(33,971)	(18,158)
Production and operating expenses	(10,331)	(8,751)	(7,693)	(7,006)	(5,694)
Selling, general and administrative expenses	(893)	(1,158)	(705)	(623)	(719)
Exploration expenses	(407)	(355)	(398)	(564)	(344)
Depreciation, depletion and amortization	(11,500)	(9,599)	(8,270)	(7,504)	(7,208)
Impairments	(26)	(80)	(14)	12)	(674)
Taxes other than income taxes	(2,146)	(2,087)	(2,074)	(3,364)	(1,634)
Accretion on discounted liabilities	(378)	(325)	(283)	(250)	(242)
Operating income	13,542)	14,586)	17,162)	28,886)	13,676)
Interest and debt expense	(855)	(783)	(780)	(805)	(884)
Foreign currency transaction gain (loss)	(11)	50)	(92)	100)	22)
Other expenses	(20)	(181)	(2)	47)	(102)
Income before income taxes	12,656)	13,672)	16,288)	28,228)	12,712)
Income tax provision	(4,668)	(4,427)	(5,331)	(9,548)	(4,633)
Net income	7,988)	9,245)	10,957)	18,680)	8,079)

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 financial performance presented demonstrates significant fluctuations over the five-year period. Revenues and other income experienced substantial growth between 2021 and 2022, followed by a decline in 2023 and relative stability through 2025. Net income mirrored this pattern, peaking in 2022 before decreasing in subsequent years, though remaining positive throughout the period.

Revenue Trends: Revenues and other income increased markedly from US$48.349 billion in 2021 to US$82.156 billion in 2022, representing a growth of approximately 68.8%. This was followed by a decrease to US$58.574 billion in 2023 and a further slight decline to US$56.953 billion in 2024. A modest recovery to US$61.548 billion was observed in 2025. The largest component of revenue, Sales and other operating revenues, follows a similar pattern.
Profitability Analysis: Operating income exhibited a similar trajectory to revenues, rising from US$13.676 billion in 2021 to US$28.886 billion in 2022, then declining to US$17.162 billion in 2023, US$14.586 billion in 2024, and stabilizing at US$13.542 billion in 2025. Net income peaked at US$18.680 billion in 2022 before decreasing to US$10.957 billion, US$9.245 billion, and US$7.988 billion in 2023, 2024, and 2025 respectively. This suggests a strong correlation between revenue fluctuations and profitability.
Expense Management: Purchased commodities represent a significant outflow, consistently ranging between US$20 billion and US$34 billion annually. Production and operating expenses demonstrate a consistent upward trend, increasing from US$5.694 billion in 2021 to US$10.331 billion in 2025. Depreciation, depletion, and amortization also increased steadily over the period, reaching US$11.5 billion in 2025. Selling, general and administrative expenses experienced an increase in 2024, but decreased in 2025.
Non-Operating Items: Equity in earnings of affiliates contributed consistently to income, though with a slight decline in 2025. Gains on dispositions were substantial in 2022 and 2025, but significantly lower in 2023 and 2024. Interest income increased from 2022 to 2023, then stabilized and slightly decreased in 2024 and 2025. The Gain on investment in Cenovus Energy was only present in 2021 and 2022.
Tax Impact: The income tax provision generally followed the trend of net income, being highest in 2022 when net income was at its peak. Taxes other than income taxes remained relatively stable, though substantial, throughout the period.

Overall, the period was characterized by a significant surge in revenue and profitability in 2022, followed by a period of adjustment and relative stabilization. Increasing operating expenses, particularly production and operating expenses and depreciation, depletion, and amortization, represent a potential area for monitoring. The contribution from non-operating items, while positive, varied considerably year to year.

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ConocoPhillips (NYSE:COP)

Income Statement