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, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Federal 1,054 1,263 32 3 18
Foreign 2,931 5,813 3,128 350 2,545
State and local 202 386 127 (4) 148
Current 4,187 7,462 3,287 349 2,711
Federal 825 1,629 1,161 (625) (113)
Foreign 254 387 66 (70) (323)
State and local 65 70 119 (139) (8)
Deferred 1,144 2,086 1,346 (834) (444)
Income tax provision (benefit) 5,331 9,548 4,633 (485) 2,267

Based on: 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), 10-K (reporting date: 2019-12-31).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. ConocoPhillips current increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. ConocoPhillips deferred increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
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) increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Effective Income Tax Rate (EITR)

ConocoPhillips, effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Federal statutory income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Non-U.S. effective tax rates 12.70% 13.70% 15.10% -6.20% 14.70%
Australia disposition 0.00% 0.00% 0.00% 11.10% 0.00%
U.K. disposition 0.00% 0.00% 0.00% 0.00% -7.70%
Recovery of outside basis 0.00% -0.10% -0.40% 0.70% -0.80%
Adjustment to tax reserves -1.90% -2.00% -0.10% -0.60% 0.10%
Adjustment to valuation allowance 0.00% 0.00% -0.40% -14.60% -2.40%
State income tax 1.30% 1.40% 1.50% 3.60% 1.30%
Malaysia Deepwater Incentive 0.00% 0.00% 0.00% 0.00% -1.70%
Enhanced oil recovery credit -0.10% -0.10% -0.80% 0.20% -0.30%
Other -0.30% -0.10% 0.50% 0.30% -0.40%
Effective income tax rate 32.70% 33.80% 36.40% 15.50% 23.80%

Based on: 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), 10-K (reporting date: 2019-12-31).

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 2021 to 2022 and from 2022 to 2023.

Components of Deferred Tax Assets and Liabilities

ConocoPhillips, components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Benefit plan accruals 413 450 321 540 542
Asset retirement obligations and accrued environmental costs 2,608 2,333 2,297 2,262 2,339
Investments in joint ventures 2,133 1,917 1,684 1,653 1,722
Other financial accruals and deferrals 448 736 827 907 777
Loss and credit carryforwards 5,629 6,354 7,402 8,904 8,968
Other 121 112 399 365 345
Deferred tax assets 11,352 11,902 12,930 14,631 14,693
Valuation allowance (7,656) (8,049) (8,342) (9,965) (10,214)
Deferred tax assets net of valuation allowance 3,696 3,853 4,588 4,666 4,479
PP&E and intangibles (11,992) (11,100) (10,170) (7,744) (8,660)
Inventory (46) (48) (44) (64) (35)
Other (216) (190) (213) (242) (234)
Deferred tax liabilities (12,254) (11,338) (10,427) (8,050) (8,929)
Net deferred tax assets (liabilities) (8,558) (7,485) (5,839) (3,384) (4,450)

Based on: 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), 10-K (reporting date: 2019-12-31).

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 2021 to 2022 and from 2022 to 2023.
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 2021 to 2022 and from 2022 to 2023.
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 2021 to 2022 and from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

ConocoPhillips, deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Deferred tax assets 255 241 340 363 184
Deferred tax liabilities 8,813 7,726 6,179 3,747 4,634

Based on: 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), 10-K (reporting date: 2019-12-31).

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 decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
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 2021 to 2022 and from 2022 to 2023.

Adjustments to Financial Statements: Removal of Deferred Taxes

ConocoPhillips, adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 95,924 93,829 90,661 62,618 70,514
Less: Noncurrent deferred tax assets, net 255 241 340 363 184
Total assets (adjusted) 95,669 93,588 90,321 62,255 70,330
Adjustment to Total Liabilities
Total liabilities (as reported) 46,645 45,826 45,255 32,769 35,464
Less: Noncurrent deferred tax liabilities, net 8,813 7,726 6,179 3,747 4,634
Total liabilities (adjusted) 37,832 38,100 39,076 29,022 30,830
Adjustment to Common Stockholders’ Equity
Common stockholders’ equity (as reported) 49,279 48,003 45,406 29,849 34,981
Less: Net deferred tax assets (liabilities) (8,558) (7,485) (5,839) (3,384) (4,450)
Common stockholders’ equity (adjusted) 57,837 55,488 51,245 33,233 39,431
Adjustment to Net Income (loss) Attributable To ConocoPhillips
Net income (loss) attributable to ConocoPhillips (as reported) 10,957 18,680 8,079 (2,701) 7,189
Add: Deferred income tax expense (benefit) 1,144 2,086 1,346 (834) (444)
Net income (loss) attributable to ConocoPhillips (adjusted) 12,101 20,766 9,425 (3,535) 6,745

Based on: 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), 10-K (reporting date: 2019-12-31).

ConocoPhillips, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

ConocoPhillips, adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin 19.52% 23.80% 17.63% -14.38% 22.07%
Adjusted net profit margin 21.55% 26.46% 20.57% -18.82% 20.71%
Total Asset Turnover
Reported total asset turnover 0.59 0.84 0.51 0.30 0.46
Adjusted total asset turnover 0.59 0.84 0.51 0.30 0.46
Financial Leverage
Reported financial leverage 1.95 1.95 2.00 2.10 2.02
Adjusted financial leverage 1.65 1.69 1.76 1.87 1.78
Return on Equity (ROE)
Reported ROE 22.23% 38.91% 17.79% -9.05% 20.55%
Adjusted ROE 20.92% 37.42% 18.39% -10.64% 17.11%
Return on Assets (ROA)
Reported ROA 11.42% 19.91% 8.91% -4.31% 10.20%
Adjusted ROA 12.65% 22.19% 10.44% -5.68% 9.59%

Based on: 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), 10-K (reporting date: 2019-12-31).

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 improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. ConocoPhillips adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
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 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. ConocoPhillips adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. ConocoPhillips adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

ConocoPhillips, Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to ConocoPhillips 10,957 18,680 8,079 (2,701) 7,189
Sales and other operating revenues 56,141 78,494 45,828 18,784 32,567
Profitability Ratio
Net profit margin1 19.52% 23.80% 17.63% -14.38% 22.07%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to ConocoPhillips 12,101 20,766 9,425 (3,535) 6,745
Sales and other operating revenues 56,141 78,494 45,828 18,784 32,567
Profitability Ratio
Adjusted net profit margin2 21.55% 26.46% 20.57% -18.82% 20.71%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to ConocoPhillips ÷ Sales and other operating revenues
= 100 × 10,957 ÷ 56,141 = 19.52%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to ConocoPhillips ÷ Sales and other operating revenues
= 100 × 12,101 ÷ 56,141 = 21.55%

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 improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Sales and other operating revenues 56,141 78,494 45,828 18,784 32,567
Total assets 95,924 93,829 90,661 62,618 70,514
Activity Ratio
Total asset turnover1 0.59 0.84 0.51 0.30 0.46
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Sales and other operating revenues 56,141 78,494 45,828 18,784 32,567
Adjusted total assets 95,669 93,588 90,321 62,255 70,330
Activity Ratio
Adjusted total asset turnover2 0.59 0.84 0.51 0.30 0.46

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Sales and other operating revenues ÷ Total assets
= 56,141 ÷ 95,924 = 0.59

2 Adjusted total asset turnover = Sales and other operating revenues ÷ Adjusted total assets
= 56,141 ÷ 95,669 = 0.59

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 improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 95,924 93,829 90,661 62,618 70,514
Common stockholders’ equity 49,279 48,003 45,406 29,849 34,981
Solvency Ratio
Financial leverage1 1.95 1.95 2.00 2.10 2.02
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 95,669 93,588 90,321 62,255 70,330
Adjusted common stockholders’ equity 57,837 55,488 51,245 33,233 39,431
Solvency Ratio
Adjusted financial leverage2 1.65 1.69 1.76 1.87 1.78

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Common stockholders’ equity
= 95,924 ÷ 49,279 = 1.95

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted common stockholders’ equity
= 95,669 ÷ 57,837 = 1.65

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 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to ConocoPhillips 10,957 18,680 8,079 (2,701) 7,189
Common stockholders’ equity 49,279 48,003 45,406 29,849 34,981
Profitability Ratio
ROE1 22.23% 38.91% 17.79% -9.05% 20.55%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to ConocoPhillips 12,101 20,766 9,425 (3,535) 6,745
Adjusted common stockholders’ equity 57,837 55,488 51,245 33,233 39,431
Profitability Ratio
Adjusted ROE2 20.92% 37.42% 18.39% -10.64% 17.11%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROE = 100 × Net income (loss) attributable to ConocoPhillips ÷ Common stockholders’ equity
= 100 × 10,957 ÷ 49,279 = 22.23%

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to ConocoPhillips ÷ Adjusted common stockholders’ equity
= 100 × 12,101 ÷ 57,837 = 20.92%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. ConocoPhillips adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to ConocoPhillips 10,957 18,680 8,079 (2,701) 7,189
Total assets 95,924 93,829 90,661 62,618 70,514
Profitability Ratio
ROA1 11.42% 19.91% 8.91% -4.31% 10.20%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to ConocoPhillips 12,101 20,766 9,425 (3,535) 6,745
Adjusted total assets 95,669 93,588 90,321 62,255 70,330
Profitability Ratio
Adjusted ROA2 12.65% 22.19% 10.44% -5.68% 9.59%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net income (loss) attributable to ConocoPhillips ÷ Total assets
= 100 × 10,957 ÷ 95,924 = 11.42%

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to ConocoPhillips ÷ Adjusted total assets
= 100 × 12,101 ÷ 95,669 = 12.65%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. ConocoPhillips adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.