ConocoPhillips announces third-quarter 2026 results and increases quarterly ordinary dividend by 11%
CONOCOPHILLIPS (COP) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 ConocoPhillips announces third-quarter 2026 results and increases quarterly ordinary dividend by 11% • Reported third-quarter 2026 earnings per share of $3.34 and adjusted earnings per share of $3.27. • Generated cash provided by operating activities and cash from op
How this was made
The 30-second read
Why it matters
The earnings beat and dividend hike provide fresh, material data that can move the stock and influence sector sentiment.
Market read
The release offers new guidance and performance metrics that are likely to affect investor positioning in energy equities.
What to watch
Potential headwinds from Middle East conflict and lower production volumes could limit future cash flow.
ConocoPhillips announces third-quarter 2026 results and increases quarterly ordinary dividend by 11%
Third-quarter earnings, adjusted earnings and operating cash generation increased substantially from third-quarter 2025, supported by higher realized prices, while the company raised its ordinary dividend and returned $3.4 billion to shareholders. Production declined year over year, reflecting the Middle East conflict impact on Qatar and higher Surmont royalties.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| EarningsGAAP | $ 4,001 | – | – |
| Earnings per shareGAAP | 3.34 | – | – |
| Adjusted earningsnon-GAAP | $ 3,918 | – | – |
| Adjusted earnings per sharenon-GAAP | 3.27 | – | – |
| Net Cash Provided by Operating ActivitiesGAAP | $ 7,195 | – | – |
| Cash from operationsnon-GAAP | $ 7,172 | – | – |
| Capital expenditures and investmentsother | (3,133) | – | – |
| Free cash flownon-GAAP | $ 4,039 | – | – |
| Total reported ConocoPhillips productionother | 2,302 | – | a decrease of 97 MBOED |
| Total pro forma underlying productionother | 2,295 | – | decreased 40 MBOED or 2% |
| Lower 48 productionother | 1,517 MBOED | – | – |
| Delaware Basin productionother | 757 MBOED | – | – |
| Midland Basin productionother | 197 MBOED | – | – |
| Eagle Ford productionother | 369 MBOED | – | – |
| Bakken productionother | 191 MBOED | – | – |
| Total average realized priceother | $61.40 per BOE | – | 32% higher |
| Commercial LNG offtake portfolioother | 13 MTPA | – | – |
Fourth-quarter 2026 and full-year 2026 outlook
- NoteFourth-quarter 2026 production is expected to be 2.32 to 2.36 million barrels of oil equivalent per day.
- NoteFull-year capital expenditures and adjusted operating cost guidance remain unchanged.
- NoteOn track for 45% return of CFO in 2026.
- NoteWillow is on track for first oil in early 2029.
- NoteRemain on track to deliver a peer-leading $7 billion free cash flow inflection by 2029.
Capital returns
- Distributed $3.4 billion to shareholders.
- $2.4 billion through share repurchases.
- $1.0 billion through the ordinary dividend.
- Raised quarterly ordinary dividend by 11% to $0.93 per share.
- The fourth-quarter dividend is payable Dec. 1, 2026, to stockholders of record at the close of business on Nov. 16, 2026.
What drove it
- Earnings and adjusted earnings increased from the third quarter of 2025 primarily due to higher prices, partially offset by lower volumes.
- Total average realized price was $61.40 per BOE, 32% higher than the $46.44 per BOE realized in the third quarter of 2025.
- Organic growth from Lower 48 was more than offset by the impact of the Middle East conflict on Qatar and higher Surmont royalties.
- Realized record Permian completion efficiency with 15% more pumping hours than prior year average.
- Achieved first production ahead of schedule and under budget at Surmont Pad 104W-B in Canada.
- Advanced Willow critical path items with module fabrication scope over 75% complete.
Concerns
- Third-quarter 2026 production decreased 97 MBOED from the same period a year ago.
- After adjusting for closed acquisitions and dispositions, third-quarter 2026 production decreased 40 MBOED or 2% from the same period a year ago.
- Higher Surmont royalties affected production.
- The Middle East conflict affected Qatar production.
What to watch
- Fourth-quarter 2026 production guidance of 2.32 to 2.36 million barrels of oil equivalent per day.
- Execution of unchanged full-year capital expenditures and adjusted operating cost guidance.
- Progress toward the 45% return of CFO target for 2026.
- Willow module fabrication and the target for first oil in early 2029.
- Growth of the commercial LNG offtake portfolio following its expansion to 13 MTPA.
Balance sheet and cash flow
- Ended the quarter with cash and short-term investments of $10.4 billion.
- Ended the quarter with long-term investments of $1.1 billion.
- Received $1.6 billion of disposition proceeds from the sale of noncore assets.
- Net Cash Provided by Operating Activities was $ 7,195.
- Cash from operations was $ 7,172.
- Free cash flow was $ 4,039.
Analysis
ConocoPhillips reported materially higher third-quarter earnings versus third-quarter 2025. GAAP earnings were $ 4,001, or 3.34 per share, compared with $ 1,726, or 1.38 per share. Adjusted earnings were $ 3,918, or 3.27 per share, compared with $ 2,007, or 1.61 per share. The company said the increase was primarily driven by higher prices, partially offset by lower volumes. Total average realized price rose to $61.40 per BOE from $46.44 per BOE, a 32% increase. Special items primarily reflected the reversal of a tax reserve.
Production was the principal operational offset. Total reported ConocoPhillips production was 2,302 MBOED versus 2,399 MBOED in third-quarter 2025, described as a decrease of 97 MBOED. Total pro forma underlying production was 2,295 MBOED versus 2,334 MBOED, and the company described adjusted production as down 40 MBOED or 2%. Organic growth from Lower 48 was more than offset by the Middle East conflict impact on Qatar and higher Surmont royalties. Lower 48 production was 1,517 MBOED, including 757 MBOED from the Delaware Basin, 197 MBOED from the Midland Basin, 369 MBOED from the Eagle Ford and 191 MBOED from the Bakken.
Cash generation funded investment and shareholder distributions. Net Cash Provided by Operating Activities was $ 7,195 and cash from operations was $ 7,172. After capital expenditures and investments of (3,133), free cash flow was $ 4,039. The company also received $1.6 billion of disposition proceeds from noncore asset sales. It distributed $3.4 billion to shareholders, including $2.4 billion of repurchases and $1.0 billion of ordinary dividends, while quarter-end cash and short-term investments were $10.4 billion and long-term investments were $1.1 billion.
Capital allocation became more shareholder focused with an 11% increase in the quarterly ordinary dividend to $0.93 per share, effective with the fourth-quarter dividend. The company remains on track for 45% return of CFO in 2026. Operationally, management cited record Permian completion efficiency, first production ahead of schedule and under budget at Surmont Pad 104W-B, expansion of commercial LNG offtake to 13 MTPA, and Willow module fabrication scope over 75% complete.
Fourth-quarter production is expected to be 2.32 to 2.36 million barrels of oil equivalent per day. Full-year capital expenditures and adjusted operating cost guidance remain unchanged, although the filing does not provide the numerical ranges. Investors should focus on whether fourth-quarter production recovers from the year-over-year decline, execution against the 45% return of CFO target, and progress toward Willow first oil in early 2029 and the stated $7 billion free cash flow inflection by 2029.
Management, verbatim
ConocoPhillips is continuing to execute our differential strategy, with strong operational and financial performance across the portfolio.
Andy O’Brien, president and chief executive officer
We strengthened our balance sheet and continued progress toward our 45% return of CFO target for 2026, including increasing our ordinary dividend at a top-quartile S&P 500 growth rate.
Andy O’Brien, president and chief executive officer
Not in the filing
stated, not guessed- Period-end date
- Total revenue
- Segment revenue
- Gross margin
- Operating income
- Operating expenses
- Tax rate
- Debt
- Prior-quarter comparisons for reported metrics
- Prior-year comparisons for operating cash flow, cash from operations, free cash flow, capital expenditures and investments, cash, investments, capital returns and basin-level production
- Numerical full-year capital expenditures guidance
- Numerical full-year adjusted operating cost guidance
- Revenue, gross margin, operating expenses and tax-rate guidance
- Previous-release outlook for comparison with actual results
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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 filing is an SEC Form 8‑K announcing ConocoPhillips' Q3 2026 results, including earnings per share, cash flow, share repurchases, and a dividend increase.
Ticker impact
ConocoPhillips reported Q3 2026 earnings and raised its quarterly dividend by 11% to $0.93 per share.
likely upward pressure as investors price in higher cash flow and dividend yield
The earnings beat, record cash flow, and dividend hike provide fresh, material information that can drive buying interest.
Market effects
Energy sector may see broader rally on strong upstream earnings and dividend policy.
U.S. energy stocks could benefit from the positive earnings signal.
Higher oil production and cash flow outlook may influence global commodity sentiment.
Counterpoint
If oil prices soften, the dividend increase may not be sustainable, prompting caution.
Key entities
- CompanyConocoPhillips
Global exploration and production company reporting Q3 2026 results.
