CONOCOPHILLIPS (COP): Results of Operations and Financial Condition
CONOCOPHILLIPS (COP) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 ConocoPhillips announces second-quarter 2026 results and quarterly dividend • Reported second-quarter 2026 earnings per share of $3.23 and adjusted earnings per share of $3.24. • Generated cash provided by operating activities of $7.4 billion and cash from operations
How this was made
The 30-second read
Why it matters
This disclosure updates the company’s latest quarterly and YTD financial performance, including net income, adjusted earnings, and tax/impairment-related line items that can affect valuation models and near-term sentiment.
Market read
Traders can use the new quarterly datapoints (net income, adjusted earnings, segment earnings, effective tax rates, and special items) to reassess earnings trajectory and earnings quality, but the excerpt lacks guidance or explicit surprises versus consensus.
What to watch
Traders may focus on effective tax rate swings by region and the magnitude/timing of impairments and special items, which can materially affect adjusted earnings quality even if headline net income looks stable.
Second-quarter 2026 net income was $3,931 million, with diluted net income per share of $3.23.
Second-quarter net income, diluted EPS, total revenues and other income, and operating cash flow were higher than both the first and second quarters of 2025 shown in the supplemental information. Lower 48 earnings were $2,584 million, the largest reported geographic earnings contribution.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Sales and other operating revenuesGAAP | $19,161 million | – | – |
| Equity in earnings of affiliatesGAAP | $239 million | – | – |
| Gain (loss) on dispositionsGAAP | $14 million | – | – |
| Other incomeGAAP | $108 million | – | – |
| Total revenues and other incomeGAAP | $19,522 million | – | – |
| Total costs and expensesGAAP | $13,440 million | – | – |
| Income (loss) before income taxesGAAP | $6,082 million | – | – |
| Income tax provision (benefit)GAAP | $2,151 million | – | – |
| Net income (loss)GAAP | $3,931 million | – | – |
| Net income (loss) per share of common stock, basicGAAP | $3.23 | – | – |
| Net income (loss) per share of common stock, dilutedGAAP | $3.23 | – | – |
| Weighted-average common shares outstanding, basicother | 1,213,453 (in thousands) | – | – |
| Weighted-average common shares outstanding, dilutedother | 1,214,255 (in thousands) | – | – |
| Consolidated effective income tax rateGAAP | 35.4 % | – | – |
| Consolidated adjusted earningsnon-GAAP | $3,951 million | – | – |
| Consolidated adjusted effective income tax ratenon-GAAP | 35.3 % | – | – |
| Total Company special itemsnon-GAAP | $(20) million | – | – |
| Net cash provided by operating activitiesGAAP | $7,434 million | – | – |
| Capital expenditures and investmentsGAAP | $(3,024) million | – | – |
| Net cash used in investing activitiesGAAP | $(3,511) million | – | – |
| Net cash used in financing activitiesGAAP | $(3,170) million | – | – |
Capital returns
- Repurchase of company common stock: $(2,000) million in the second quarter of 2026.
- Dividends paid: $(1,025) million in the second quarter of 2026.
- Ending common shares outstanding was 1,201,337 as of June 30, 2026, compared with 1,218,294 as of March 31, 2026.
What drove it
- Lower 48 earnings were $2,584 million, compared with $1,403 million in the first quarter of 2026 and $1,399 million in the second quarter of 2025.
- Alaska earnings were $522 million, compared with $294 million in the first quarter of 2026 and $135 million in the second quarter of 2025.
- Canada earnings were $320 million, compared with $85 million in the first quarter of 2026 and $149 million in the second quarter of 2025.
- Europe, Middle East and North Africa earnings were $346 million, compared with $265 million in the first quarter of 2026 and $237 million in the second quarter of 2025.
- Asia Pacific earnings were $389 million, compared with $295 million in the first quarter of 2026 and $330 million in the second quarter of 2025.
- Sales and other operating revenues were $19,161 million, compared with $15,761 million in the first quarter of 2026 and $14,004 million in the second quarter of 2025.
Concerns
- Production and operating expenses were $2,431 million, compared with $2,276 million in the first quarter of 2026 and $2,572 million in the second quarter of 2025.
- Taxes other than income taxes were $793 million, compared with $607 million in the first quarter of 2026 and $572 million in the second quarter of 2025.
- Depreciation, depletion and amortization was $2,983 million, compared with $2,906 million in the first quarter of 2026 and $2,838 million in the second quarter of 2025.
- Canada recorded $(58) million of special items in the second quarter of 2026, including $(76) million of pending claims and settlements before income taxes and a $60 million gain on contingent liability measurement before income taxes.
- Long-term debt was $22,828 million as of June 30, 2026, compared with $22,262 million in the first quarter of 2026.
What to watch
- Lower 48 earnings and the level of sales and other operating revenues.
- Operating cash flow relative to capital expenditures and investments of $(3,024) million.
- The pace of common-stock repurchases after $(2,000) million in the second quarter of 2026.
- Canada pending claims and settlements and contingent liability measurement items.
- Cash and cash equivalents, short-term investments, and debt balances.
Balance sheet and cash flow
- Cash and cash equivalents: $6,574 million as of June 30, 2026.
- Short-term investments: $1,118 million as of June 30, 2026.
- Short-term debt: $462 million as of June 30, 2026.
- Long-term debt: $22,828 million as of June 30, 2026.
- Total assets: $124,261 million as of June 30, 2026.
- Total liabilities: $58,912 million as of June 30, 2026.
- Total equity: $65,349 million as of June 30, 2026.
- Cash, cash equivalents and restricted cash at end of period: $6,965 million.
- Net cash provided by operating activities: $7,434 million.
- Net cash used in investing activities: $(3,511) million.
- Net cash used in financing activities: $(3,170) million.
- Net change in cash, cash equivalents and restricted cash: $719 million.
Analysis
ConocoPhillips reported $19,522 million of total revenues and other income and $3,931 million of net income in the second quarter of 2026. Both figures were above the $16,054 million and $2,183 million reported in the first quarter of 2026, respectively, and above the $14,740 million and $1,971 million reported in the second quarter of 2025. Diluted net income per share was $3.23, compared with $1.78 in the first quarter of 2026 and $1.56 in the second quarter of 2025.
The reported earnings mix was led by Lower 48, where earnings were $2,584 million. Alaska contributed $522 million, Asia Pacific contributed $389 million, Europe, Middle East and North Africa contributed $346 million, and Canada contributed $320 million. Corporate and Other recorded earnings of $(230) million. Consolidated income before income taxes was $6,082 million, while the consolidated effective income tax rate was 35.4 %.
Cash generation strengthened during the period. Net cash provided by operating activities was $7,434 million, compared with $4,295 million in the first quarter of 2026 and $3,485 million in the second quarter of 2025. Capital expenditures and investments were $(3,024) million, while net cash used in investing activities was $(3,511) million. The filing does not report free cash flow.
Capital returns totaled $(2,000) million for common-stock repurchases and $(1,025) million for dividends paid in the second quarter. Ending common shares outstanding were 1,201,337 as of June 30, 2026, versus 1,218,294 as of March 31, 2026. Cash and cash equivalents were $6,574 million, short-term investments were $1,118 million, short-term debt was $462 million, and long-term debt was $22,828 million as of June 30, 2026.
Adjusted earnings were $3,951 million, compared with $2,324 million in the first quarter of 2026 and $1,793 million in the second quarter of 2025. Total Company special items were $(20) million in the second quarter, following $(141) million in the first quarter. No forward guidance, earnings release narrative, CFO commentary, or prior-period outlook was included in the provided filing text, so there is no reported guide or prior-guidance comparison to assess.
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- Operating income and operating margin were not reported.
- Non-GAAP EPS was not reported.
- Free cash flow was not reported.
- Segment revenue was not reported. The supplemental information reports income before income taxes, earnings, adjusted earnings, and tax rates by geographic segment, but not revenue by segment.
- Forward revenue, margin, operating-expense, tax-rate, capital-expenditure, production, or other guidance was not included in the provided filing text.
- Prior outlook was not provided.
- Management earnings-release commentary and named executive quotes were not included in the provided filing text.
- A cash flow statement footnote is truncated after the text "Restricted cash is included i".
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The SEC 8-K (Item 2.02) includes Exhibit 99.2 with detailed supplemental financial information for ConocoPhillips’ 2Q 2026 results, including consolidated income statement, segment earnings, special items, and effective tax rates.
Ticker impact
ConocoPhillips files an 8-K with 2Q 2026 results, including net income of $2.183B and consolidated revenues of $19.522B YTD.
Low to medium near-term sensitivity, mainly for traders tracking earnings momentum and tax/impairment effects; likely limited unless investors focus on specific line-item surprises.
This is a primary-source earnings supplement via SEC 8-K, but the excerpt does not include explicit guidance, consensus comparisons, or management commentary that would typically create a larger repricing catalyst.
Market effects
Adds incremental signal on upstream profitability drivers (production costs, depreciation, impairments, and effective tax rates) for the integrated oil and gas peer set.
Segment breakdown (Alaska, Lower 48, Canada, EMEA, Asia Pacific) can inform regional risk premia and cost/tax expectations for traders tracking those basins.
Quarterly earnings detail can modestly influence sentiment toward global oil majors’ cash earnings resilience, though no macro or commodity price shock is disclosed in the excerpt.
Counterpoint
Without explicit guidance, buyback updates, or management commentary in the excerpt, the market may treat this as routine earnings disclosure and trade it as noise versus crude/gas price moves.
Key entities
- companyConocoPhillips
Subject of the SEC 8-K filing, providing 2Q 2026 results and detailed supplemental financial tables.
