ConocoPhillips’ Q1 2025 earnings report and a detailed review of rig data reveal a strategic shift in capital spending, operational efficiency, and the evolving competitive landscape in drilling. Here’s what you need to know about capital allocation, top contractors, and where the drilling momentum is building.
📉 Capital Expenditures Trimmed, But Production Steady
In its Q1 2025 results, ConocoPhillips lowered its full-year capital expenditures guidance to $12.3–$12.6 billion, down from ~$12.9 billion previously. Operating cost guidance was also trimmed to $10.7–$10.9 billion.
“Amid a volatile macro environment, we remain confident in the competitive advantages provided by our differentiated portfolio, strong balance sheet, and disciplined capital allocation framework,”
— Ryan Lance, Chairman & CEO, ConocoPhillips
Despite lower CapEx, production guidance was maintained — a clear indicator of improved efficiency.
📊 Quarterly Drilling Activity on the Rise
Q1 2025 saw 184 new drilling records, up from 174 in Q1 2024, a 5.7% increase. This signals a resilient start to 2025, despite global market headwinds.
🛠️ Drilling & Completions: Record Performance in Eagle Ford
ConocoPhillips highlighted record drilling performance in the Eagle Ford, achieved by integrating best practices across its assets. The company also completed the largest winter construction season at Alaska’s Willow project, hitting critical development milestones.
👷♂️ Top 10 Drilling Contractors (Q1 2024 & 2025 Combined)
| Contractor and Rig | Q1 2024 Count | Q1 2025 Count | Total Q1 Activity |
|---|---|---|---|
| H&P 627 | 11 | 9 | 20 |
| H&P 450 | 6 | 10 | 16 |
| H&P 603 | 8 | 8 | 16 |
| Nabors X03 | 5 | 10 | 15 |
| H&P 526 | 8 | 7 | 15 |
| H&P 640 | 7 | 7 | 14 |
| H&P 641 | 8 | 5 | 13 |
| Nabors M07 | 6 | 6 | 12 |
| H&P 645 | 6 | 5 | 11 |
| Patterson 248 | 5 | 6 | 11 |
⚙️ Key Efficiency Trends
- Cost Reductions: Both CapEx and adjusted operating costs lowered.
- Asset Sales: $1.3B in non-core asset sales helped refocus the portfolio.
- High-Performance Wells: Eagle Ford efficiency gains demonstrate cost-effective resource development.
🗺️ Top 10 States by Q1 Drilling Activity
| State | Q1 2024 Count | Q1 2025 Count | Total Q1 Activity |
|---|---|---|---|
| Texas | 103 | 124 | 227 |
| ND | 31 | 28 | 59 |
| NM | 26 | 18 | 44 |
| AK | 10 | 14 | 24 |
| OK | 4 | 0 | 4 |
Texas dominated activity, contributing over 60% of all Q1 wells, with strong showings from North Dakota and New Mexico. Alaska’s seasonal uptick also stood out.
🧭 Final Takeaway
Efficiency is the story of 2025 so far. Even as CapEx is reduced, operators like ConocoPhillips are achieving more with less — by optimizing portfolios, improving well performance, and focusing on core regions like the Permian, Eagle Ford, and Bakken.
