CLAIM #16421 · ConocoPhillips (COP) · 2024Q3 earnings call · Oct 31, 2024 · due Dec 31, 2025
“We haven't sort of -- we're in the process right now, Paul, of putting all that together to try to come up with an inflation/deflation estimate as we go into 2025. But it feels somewhat similar year to 2024.”
Ryan Lance · CEO
In context
“the 10 years. We don't plateau until into the second decade, so a significant amount of opportunities there, and then we'll bring in the Marathon assets as well. That very competitive cost of supply, when you -- if I'm just looking at the Permian, the cost supply that we've been drilling in 2024 with really good results, as you can see in the 3Q, very similar in 2025 as well, very robust, very durable out there. Ryan Lance : Yes, on the supplier, the -- what we're seeing, kind of mixed results sort of in the supply chain and the categories of spend that you're talking about. We see some -- a bit of drop-off in rigs. We see some efficiency and maybe drop-off in pressure pumping, sand. We see some increases largely maybe on the OpEx side, chemicals, fuel, labor. So it's kind of a mixed bag. We haven't sort of -- we're in the process right now, Paul, of putting all that together to try to come up with an inflation/deflation estimate as we go into 2025. But it feels somewhat similar year to 2024. But we're in the middle of doing all that front-end work right now. I don't know if you have any more to add to that, Nick. Nick Olds : Yes. I think, Paul, obviously, we continue to see deflation capture through 2024 across all major spend categories. Tubulars as it was the largest as we've seen that, up to a 30% reduction. We can see proppant going down, pressure pumping going down. And rig rates, even this quarter, we're seeing some modest deflation capture on rig rates as well as pumping services going in there. I think that's going to level out to some degree in 2025. Just depends on kind of overall supply/demand of those services as we look forward based on what commodity prices are going to be out there. Operator: Our next question comes from Kevin MacCurdy with Pickering Energy Par”
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SEC filings for COP ↗ · Claim quote is verbatim from the 2024Q3 earnings call.