Stock Analysis on Net

ConocoPhillips (NYSE:COP)

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

ConocoPhillips, FCFF calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income (loss) attributable to ConocoPhillips 10,957 18,680 8,079 (2,701) 7,189
Net income attributable to noncontrolling interests 46 68
Net noncash charges 10,390 9,868 7,646 7,829 4,426
Working capital adjustments (1,382) (234) 1,271 (372) (579)
Net cash provided by operating activities 19,965 28,314 16,996 4,802 11,104
Cash payments, interest, net of tax1 472 578 588 663 617
Interest capitalized, net of tax2 103 38 39 46 43
Capital expenditures and investments (11,248) (10,159) (5,324) (4,715) (6,636)
Free cash flow to the firm (FCFF) 9,292 18,771 12,299 797 5,129

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
FCFF Free cash flow to the firm is the cash flow available to the ConocoPhillips suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. ConocoPhillips FCFF increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Interest Paid, Net of Tax

ConocoPhillips, interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR1 32.70% 33.80% 36.40% 15.50% 23.80%
Interest Paid, Net of Tax
Cash payments, interest, before tax 701 873 924 785 810
Less: Cash payments, interest, tax2 229 295 336 122 193
Cash payments, interest, net of tax 472 578 588 663 617
Interest Costs Capitalized, Net of Tax
Interest capitalized, before tax 153 58 62 55 57
Less: Interest capitalized, tax3 50 20 23 9 14
Interest capitalized, net of tax 103 38 39 46 43

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).

1 See details »

2 2023 Calculation
Cash payments, interest, tax = Cash payments, interest × EITR
= 701 × 32.70% = 229

3 2023 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= 153 × 32.70% = 50


Enterprise Value to FCFF Ratio, Current

ConocoPhillips, current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 142,488
Free cash flow to the firm (FCFF) 9,292
Valuation Ratio
EV/FCFF 15.33
Benchmarks
EV/FCFF, Competitors1
Chevron Corp. 14.85
Exxon Mobil Corp. 15.58
Marathon Petroleum Corp. 5.61
Occidental Petroleum Corp. 10.72
Valero Energy Corp. 6.18
EV/FCFF, Sector
Oil, Gas & Consumable Fuels 12.74
EV/FCFF, Industry
Energy 12.88

Based on: 10-K (reporting date: 2023-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

ConocoPhillips, historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 142,912 139,467 131,808 73,692 67,767
Free cash flow to the firm (FCFF)2 9,292 18,771 12,299 797 5,129
Valuation Ratio
EV/FCFF3 15.38 7.43 10.72 92.48 13.21
Benchmarks
EV/FCFF, Competitors4
Chevron Corp. 14.85 8.27 13.33 106.63 16.67
Exxon Mobil Corp. 12.47 7.84 10.06 44.38
Marathon Petroleum Corp. 6.31 5.22 7.80 13.14
Occidental Petroleum Corp. 11.15 5.95 8.39 25.58 45.65
Valero Energy Corp. 6.36 5.39 10.62 9.96
EV/FCFF, Sector
Oil, Gas & Consumable Fuels 11.74 7.32 10.61 399.27 21.17
EV/FCFF, Industry
Energy 12.06 7.80 10.93 210.37 21.44

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).

1 See details »

2 See details »

3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 142,912 ÷ 9,292 = 15.38

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. ConocoPhillips EV/FCFF ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.