ConocoPhillips has raised its dividend by 8% to $0.84 per share for the third quarter of 2025 (Q3 2025), overshadowed by concerns of higher costs at the Willow project in Alaska, US.
The US-based company reported net income of $1.7bn for Q3 2025, which decreased from $2.1bn in the same period last year.
Earnings per share for the quarter stood at $1.38, compared to $1.76 in the corresponding quarter in 2024.
Adjusted earnings for the quarter, excluding special items primarily related to restructuring costs, were $2bn, down from $2.1bn in Q3 the previous year.
The company generated $5.9bn in cash from operating activities in the quarter, with cash from operations reported at $5.4bn.
Production for the quarter totalled 2.3 million barrels of oil equivalent per day (mboe/d), with production from the lower 48 states reaching 1.5mboe/d.
The company distributed more than $2.2bn to shareholders during the quarter, including $1.3bn through share repurchases and $1bn via the ordinary dividend.
It has ended the quarter with $6.6bn in cash and short-term investments, and $1.1bn in long-term investments.
ConocoPhillips chairman and CEO Ryan Lance said: “ConocoPhillips again demonstrated strong operational and financial performance in the third quarter, resulting in higher production and reduced operating cost guidance for 2025.
“We increased our base dividend by 8%, consistent with our goal to provide top quartile dividend growth in the S&P 500.
“Looking to 2026, we expect lower capital and operating costs with flat to modest production growth. Willow total project capital is updated to $8.5bn–$9bn, with total LNG [liquefied natural gas] project capital reduced to $3.4bn.
“Powered by our deep, durable and diverse portfolio, we remain on track to deliver an expected $7bn in incremental free cash flow by 2029, including $1bn each year from 2026 through 2028.”
ConocoPhillips reported progress on its Willow project in Alaska, with the updated project capital guidance reflecting inflation and increased costs specific to the North Slope and marine sectors.
The company now expects first oil from Willow in early 2029, with the project nearing 50% completion.
On the LNG front, the company reduced its total LNG project capital guidance to $3.4bn after securing a $600m credit for Port Arthur capital spending.
LNG projects in Qatar and the US Gulf Coast remain on schedule, with first LNG from the North Field East project expected in 2026.
Furthermore, the company reported more than $3bn in asset dispositions in 2025 and remains on track to meet its $5bn target by year-end 2026.
ConocoPhillips, in collaboration with partner 3D Energi, recently commenced drilling at the Essington-1 gas exploration well in the Otway Basin, Victoria, Australia.
