Stock Analysis on Net
Stock Analysis on Net

ConocoPhillips (NYSE:COP)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

ConocoPhillips, income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Federal 629 1,054 1,263 32 3
Foreign 3,249 2,931 5,813 3,128 350
State and local 182 202 386 127 (4)
Current 4,060 4,187 7,462 3,287 349
Federal 247 825 1,629 1,161 (625)
Foreign 71 254 387 66 (70)
State and local 49 65 70 119 (139)
Deferred 367 1,144 2,086 1,346 (834)
Income tax provision (benefit) 4,427 5,331 9,548 4,633 (485)

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).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. ConocoPhillips current decreased from 2022 to 2023 and from 2023 to 2024.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. ConocoPhillips deferred decreased from 2022 to 2023 and from 2023 to 2024.
Income tax provision (benefit) Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. ConocoPhillips income tax provision (benefit) decreased from 2022 to 2023 and from 2023 to 2024.

Effective Income Tax Rate (EITR)

ConocoPhillips, effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Federal statutory income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Non-U.S. effective tax rates 13.30% 12.70% 13.70% 15.10% -6.20%
Australia disposition 0.00% 0.00% 0.00% 0.00% 11.10%
Recovery of outside basis 0.00% 0.00% -0.10% -0.40% 0.70%
Adjustment to tax reserves -0.40% -1.90% -2.00% -0.10% -0.60%
Adjustment to valuation allowance -3.00% 0.00% 0.00% -0.40% -14.60%
State income tax 1.40% 1.30% 1.40% 1.50% 3.60%
Other 0.10% -0.40% -0.20% -0.30% 0.50%
Effective income tax rate 32.40% 32.70% 33.80% 36.40% 15.50%

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).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. ConocoPhillips effective income tax rate decreased from 2022 to 2023 and from 2023 to 2024.

Components of Deferred Tax Assets and Liabilities

ConocoPhillips, components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Benefit plan accruals 432 413 450 321 540
Asset retirement obligations and accrued environmental costs 2,799 2,608 2,333 2,297 2,262
Investments in joint ventures 2,269 2,133 1,917 1,684 1,653
Other financial accruals and deferrals 497 448 736 827 907
Loss and credit carryforwards 4,910 5,629 6,354 7,402 8,904
Other 187 121 112 399 365
Deferred tax assets 11,094 11,352 11,902 12,930 14,631
Valuation allowance (6,435) (7,656) (8,049) (8,342) (9,965)
Deferred tax assets net of valuation allowance 4,659 3,696 3,853 4,588 4,666
PP&E and intangibles (15,609) (11,992) (11,100) (10,170) (7,744)
Inventory (91) (46) (48) (44) (64)
Other (155) (216) (190) (213) (242)
Deferred tax liabilities (15,855) (12,254) (11,338) (10,427) (8,050)
Net deferred tax assets (liabilities) (11,196) (8,558) (7,485) (5,839) (3,384)

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).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. ConocoPhillips deferred tax assets decreased from 2022 to 2023 and from 2023 to 2024.
Deferred tax assets net of valuation allowance Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. ConocoPhillips deferred tax assets net of valuation allowance decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. ConocoPhillips net deferred tax assets (liabilities) decreased from 2022 to 2023 and from 2023 to 2024.

Deferred Tax Assets and Liabilities, Classification

ConocoPhillips, deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Deferred tax assets 230 255 241 340 363
Deferred tax liabilities 11,426 8,813 7,726 6,179 3,747

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).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. ConocoPhillips deferred tax assets increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. ConocoPhillips deferred tax liabilities increased from 2022 to 2023 and from 2023 to 2024.

Adjustments to Financial Statements: Removal of Deferred Taxes

ConocoPhillips, adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 122,780 95,924 93,829 90,661 62,618
Less: Noncurrent deferred tax assets, net 230 255 241 340 363
Total assets (adjusted) 122,550 95,669 93,588 90,321 62,255
Adjustment to Total Liabilities
Total liabilities (as reported) 57,984 46,645 45,826 45,255 32,769
Less: Noncurrent deferred tax liabilities, net 11,426 8,813 7,726 6,179 3,747
Total liabilities (adjusted) 46,558 37,832 38,100 39,076 29,022
Adjustment to Common Stockholders’ Equity
Common stockholders’ equity (as reported) 64,796 49,279 48,003 45,406 29,849
Less: Net deferred tax assets (liabilities) (11,196) (8,558) (7,485) (5,839) (3,384)
Common stockholders’ equity (adjusted) 75,992 57,837 55,488 51,245 33,233
Adjustment to Net Income (loss) Attributable To ConocoPhillips
Net income (loss) attributable to ConocoPhillips (as reported) 9,245 10,957 18,680 8,079 (2,701)
Add: Deferred income tax expense (benefit) 367 1,144 2,086 1,346 (834)
Net income (loss) attributable to ConocoPhillips (adjusted) 9,612 12,101 20,766 9,425 (3,535)

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).

ConocoPhillips, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

ConocoPhillips, adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net Profit Margin
Reported net profit margin 16.89% 19.52% 23.80% 17.63% -14.38%
Adjusted net profit margin 17.56% 21.55% 26.46% 20.57% -18.82%
Total Asset Turnover
Reported total asset turnover 0.45 0.59 0.84 0.51 0.30
Adjusted total asset turnover 0.45 0.59 0.84 0.51 0.30
Financial Leverage
Reported financial leverage 1.89 1.95 1.95 2.00 2.10
Adjusted financial leverage 1.61 1.65 1.69 1.76 1.87
Return on Equity (ROE)
Reported ROE 14.27% 22.23% 38.91% 17.79% -9.05%
Adjusted ROE 12.65% 20.92% 37.42% 18.39% -10.64%
Return on Assets (ROA)
Reported ROA 7.53% 11.42% 19.91% 8.91% -4.31%
Adjusted ROA 7.84% 12.65% 22.19% 10.44% -5.68%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. ConocoPhillips adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. ConocoPhillips adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 ConocoPhillips adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. ConocoPhillips adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. ConocoPhillips adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

ConocoPhillips, Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to ConocoPhillips 9,245 10,957 18,680 8,079 (2,701)
Sales and other operating revenues 54,745 56,141 78,494 45,828 18,784
Profitability Ratio
Net profit margin1 16.89% 19.52% 23.80% 17.63% -14.38%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to ConocoPhillips 9,612 12,101 20,766 9,425 (3,535)
Sales and other operating revenues 54,745 56,141 78,494 45,828 18,784
Profitability Ratio
Adjusted net profit margin2 17.56% 21.55% 26.46% 20.57% -18.82%

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).

2024 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to ConocoPhillips ÷ Sales and other operating revenues
= 100 × 9,245 ÷ 54,745 = 16.89%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to ConocoPhillips ÷ Sales and other operating revenues
= 100 × 9,612 ÷ 54,745 = 17.56%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. ConocoPhillips adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Sales and other operating revenues 54,745 56,141 78,494 45,828 18,784
Total assets 122,780 95,924 93,829 90,661 62,618
Activity Ratio
Total asset turnover1 0.45 0.59 0.84 0.51 0.30
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Sales and other operating revenues 54,745 56,141 78,494 45,828 18,784
Adjusted total assets 122,550 95,669 93,588 90,321 62,255
Activity Ratio
Adjusted total asset turnover2 0.45 0.59 0.84 0.51 0.30

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).

2024 Calculations

1 Total asset turnover = Sales and other operating revenues ÷ Total assets
= 54,745 ÷ 122,780 = 0.45

2 Adjusted total asset turnover = Sales and other operating revenues ÷ Adjusted total assets
= 54,745 ÷ 122,550 = 0.45

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. ConocoPhillips adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets 122,780 95,924 93,829 90,661 62,618
Common stockholders’ equity 64,796 49,279 48,003 45,406 29,849
Solvency Ratio
Financial leverage1 1.89 1.95 1.95 2.00 2.10
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 122,550 95,669 93,588 90,321 62,255
Adjusted common stockholders’ equity 75,992 57,837 55,488 51,245 33,233
Solvency Ratio
Adjusted financial leverage2 1.61 1.65 1.69 1.76 1.87

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).

2024 Calculations

1 Financial leverage = Total assets ÷ Common stockholders’ equity
= 122,780 ÷ 64,796 = 1.89

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted common stockholders’ equity
= 122,550 ÷ 75,992 = 1.61

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 ConocoPhillips adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to ConocoPhillips 9,245 10,957 18,680 8,079 (2,701)
Common stockholders’ equity 64,796 49,279 48,003 45,406 29,849
Profitability Ratio
ROE1 14.27% 22.23% 38.91% 17.79% -9.05%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to ConocoPhillips 9,612 12,101 20,766 9,425 (3,535)
Adjusted common stockholders’ equity 75,992 57,837 55,488 51,245 33,233
Profitability Ratio
Adjusted ROE2 12.65% 20.92% 37.42% 18.39% -10.64%

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).

2024 Calculations

1 ROE = 100 × Net income (loss) attributable to ConocoPhillips ÷ Common stockholders’ equity
= 100 × 9,245 ÷ 64,796 = 14.27%

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to ConocoPhillips ÷ Adjusted common stockholders’ equity
= 100 × 9,612 ÷ 75,992 = 12.65%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. ConocoPhillips adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to ConocoPhillips 9,245 10,957 18,680 8,079 (2,701)
Total assets 122,780 95,924 93,829 90,661 62,618
Profitability Ratio
ROA1 7.53% 11.42% 19.91% 8.91% -4.31%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to ConocoPhillips 9,612 12,101 20,766 9,425 (3,535)
Adjusted total assets 122,550 95,669 93,588 90,321 62,255
Profitability Ratio
Adjusted ROA2 7.84% 12.65% 22.19% 10.44% -5.68%

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).

2024 Calculations

1 ROA = 100 × Net income (loss) attributable to ConocoPhillips ÷ Total assets
= 100 × 9,245 ÷ 122,780 = 7.53%

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to ConocoPhillips ÷ Adjusted total assets
= 100 × 9,612 ÷ 122,550 = 7.84%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. ConocoPhillips adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.