Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
ConocoPhillips, FCFE calculation
US$ in millions
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 information reveals trends in net cash provided by operating activities and free cash flow to equity (FCFE) over a five-year period. Operating cash flow exhibited volatility, while FCFE demonstrated a clear downward trajectory.
- Net Cash from Operations
- Net cash provided by operating activities increased significantly from 2021 to 2022, rising from US$16,996 million to US$28,314 million. However, this was followed by a substantial decrease in 2023 to US$19,965 million. The subsequent two years, 2024 and 2025, show relative stability, with values of US$20,124 million and US$19,796 million respectively. This suggests a period of strong performance followed by a return to levels closer to those observed in 2021.
- Free Cash Flow to Equity (FCFE)
- FCFE initially increased from US$11,167 million in 2021 to US$14,785 million in 2022, mirroring the trend in operating cash flow. However, beginning in 2023, a consistent decline is observed. FCFE decreased to US$11,125 million in 2023, then to US$8,616 million in 2024, and further to US$6,330 million in 2025. This represents a considerable reduction in cash flow available to equity holders over the period.
The divergence between operating cash flow and FCFE after 2022 suggests that factors beyond core operations are increasingly impacting the cash available to equity holders. These factors could include changes in debt financing, share repurchases, dividend payments, or other capital allocation decisions. The consistent decrease in FCFE warrants further investigation to understand the underlying drivers and potential implications for shareholder value.
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Price to FCFE Ratio, Current
ConocoPhillips, current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 1,218,294,007 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 6,330) |
| FCFE per share | 5.20 |
| Current share price (P) | 116.98 |
| Valuation Ratio | |
| P/FCFE | 22.51 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Chevron Corp. | 16.60 |
| Exxon Mobil Corp. | 25.75 |
| P/FCFE, Sector | |
| Oil, Gas & Consumable Fuels | 21.44 |
| P/FCFE, Industry | |
| Energy | 22.00 |
Based on: 10-K (reporting date: 2025-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
ConocoPhillips, historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,222,339,152 | 1,272,380,205 | 1,176,408,368 | 1,218,776,494 | 1,299,526,916 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 6,330) | 8,616) | 11,125) | 14,785) | 11,167) | |
| FCFE per share3 | 5.18 | 6.77 | 9.46 | 12.13 | 8.59 | |
| Share price1, 4 | 108.78 | 97.45 | 111.00 | 108.36 | 91.16 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 21.01 | 14.39 | 11.74 | 8.93 | 10.61 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Chevron Corp. | 16.47 | 14.84 | 18.24 | 10.59 | 32.05 | |
| Exxon Mobil Corp. | 26.53 | 18.62 | 12.46 | 8.73 | 19.82 | |
| P/FCFE, Sector | ||||||
| Oil, Gas & Consumable Fuels | 21.56 | 16.60 | 13.84 | 9.33 | 19.75 | |
| P/FCFE, Industry | ||||||
| Energy | 21.91 | 16.35 | 14.25 | 10.19 | 20.81 | |
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).
1 Data adjusted for splits and stock dividends.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 6,330,000,000 ÷ 1,222,339,152 = 5.18
4 Closing price as at the filing date of ConocoPhillips Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 108.78 ÷ 5.18 = 21.01
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits a fluctuating pattern over the observed period. Initial values indicate a decrease followed by an increase, culminating in a substantial rise by the final year. The share price demonstrates an initial increase, a subsequent decline, and a partial recovery, while Free Cash Flow to Equity per share shows an initial rise, followed by a decline over the period.
- P/FCFE Ratio
- The P/FCFE ratio decreased from 10.61 in 2021 to 8.93 in 2022, suggesting the company became relatively cheaper compared to the free cash flow it generated for equity holders. It then increased to 11.74 in 2023 before rising significantly to 14.39 in 2024 and further to 21.01 in 2025. This substantial increase in the latter years indicates investors were willing to pay a considerably higher premium for each dollar of FCFE, potentially reflecting increased confidence or expectations for future growth, or a decrease in FCFE.
- Share Price
- The share price increased from US$91.16 in 2021 to US$108.36 in 2022, indicating positive market sentiment. A decline to US$97.45 was observed in 2024, followed by a recovery to US$108.78 in 2025. This suggests periods of market correction and subsequent stabilization or renewed investor interest.
- FCFE per Share
- FCFE per share rose from US$8.59 in 2021 to US$12.13 in 2022, demonstrating improved cash flow generation for equity holders. However, a consistent decline was then observed, falling to US$9.46 in 2023, US$6.77 in 2024, and US$5.18 in 2025. This decreasing trend in FCFE per share, coupled with the rising P/FCFE ratio in the later years, suggests that the increasing share price was not supported by corresponding growth in free cash flow.
The divergence between the P/FCFE ratio and FCFE per share in the final years of the period warrants further investigation. While the market valuation (as indicated by P/FCFE) increased, the underlying cash flow generation decreased, potentially indicating a shift in investor expectations or a reassessment of the company’s future prospects.
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