-
Reported first-quarter 2026 earnings per share of
$1.78 and adjusted earnings per share of$1.89 . -
Generated cash provided by operating activities of
$4.3 billion and cash from operations (CFO) of$5.4 billion . -
Declared second-quarter ordinary dividend of
$0.84 per share. - Updated full-year production and capital guidance; operating cost guidance unchanged.
“Our thoughts are with our team, partners and everyone impacted by the ongoing conflict in the Middle East,” said
First-quarter highlights and recent announcements
- Delivered total company and Lower 48 production of 2,309 thousand barrels of oil equivalent per day (MBOED) and 1,453 MBOED, respectively.
-
Distributed
$2.0 billion to shareholders, including$1.0 billion through share repurchases and$1.0 billion through the ordinary dividend. - Conducted successful Willow winter construction season with project achieving 50% completion.
-
Completed four-well
Alaska winter exploration program with evaluation underway and secured high-priority acreage in NPR-A lease sale. - Enhanced Lower 48 capital efficiency by more than doubling percentage of 3-mile plus lateral length wells drilled compared with prior year.
-
Executed LNG tolling agreement for third-party operated gas volumes in
Equatorial Guinea , extending life of LNG facility well into the next decade. -
Ended the quarter with cash and short-term investments of
$6.7 billion and long-term investments of$1.2 billion .
Quarterly dividend
First-quarter review
Production for the first quarter of 2026 was 2,309 MBOED, a decrease of 80 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions, first-quarter 2026 production decreased 14 MBOED or 1% from the same period a year ago. Organic growth from Lower 48 was more than offset by downtime, which includes the impact of the
Lower 48 delivered production of 1,453 MBOED, including 698 MBOED from the
Earnings and adjusted earnings decreased from the first quarter of 2025, primarily due to lower gas prices in Permian and lower volumes, partially offset by lower costs. Earnings were further impacted by special items (see Table 1). The company’s total average realized price was
For the quarter, cash provided by operating activities was
Outlook
For the second quarter, the company is excluding
Full-year production is expected to be 2.295 to 2.325 MMBOED. This reflects a 20 MBOED annual adjustment for
Capital spending for 2026 is expected to be
--- # # # ---
About
As a leading global exploration and production company,
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements as defined under the federal securities laws. Forward-looking statements relate to future events, including, without limitation, statements regarding our future financial position, business strategy, budgets, projected revenues, costs and plans, and objectives of management for future operations. Words and phrases such as “ambition,” “anticipate,” “believe,” “budget,” “continue,” “could,” “effort,” “estimate,” “expect,” “forecast,” “goal,” “guidance,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “predict,” “projection,” “seek,” “should,” “target,” “will,” “would,” and other similar words can be used to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future performance and involve certain risks, uncertainties and other factors beyond our control. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in the forward-looking statements. Factors that could cause actual results or events to differ materially from what is presented include, but are not limited to, the following: effects of volatile commodity prices, including prolonged periods of low commodity prices, which may adversely impact our operating results and our ability to execute on our strategy and could result in recognition of impairment charges on our long-lived assets, leaseholds and nonconsolidated equity investments; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas, including changes as a result of any ongoing military conflict and the global response to such conflict, security threats on facilities and infrastructure, global health crises, the imposition or lifting of crude oil production quotas or other actions that might be imposed by
Cautionary Note to U.S. Investors – The
Use of Non-GAAP Financial Information – To supplement the presentation of the company’s financial results prepared in accordance with
The company believes that the non-GAAP measure adjusted earnings (both on an aggregate and a per-share basis) is useful to investors to help facilitate comparisons of the company’s operating performance associated with the company’s core business operations across periods on a consistent basis and with the performance and cost structures of peer companies by excluding items that do not directly relate to the company’s core business operations. Adjusted earnings is defined as earnings removing the impact of special items. Adjusted EPS is a measure of the company’s diluted net earnings per share excluding special items. The company further believes that the non-GAAP measure CFO is useful to investors to help understand changes in cash provided by operating activities excluding the timing effects associated with operating working capital changes across periods on a consistent basis and for comparison with the performance of peer companies. The company believes that the above-mentioned non-GAAP measures, when viewed in combination with the company’s results prepared in accordance with GAAP, provides a more complete understanding of the factors and trends affecting the company’s business and performance. The company’s Board of Directors and management also use these non-GAAP measures to analyze the company’s operating performance across periods when overseeing and managing the company’s business.
Each of the non-GAAP measures included in this news release and the accompanying supplemental financial information has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the company’s results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the company’s presentation of non-GAAP measures in this news release and the accompanying supplemental financial information may not be comparable to similarly titled measures disclosed by other companies, including companies in our industry. The company may also change the calculation of any of the non-GAAP measures included in this news release and the accompanying supplemental financial information from time to time in light of its then existing operations to include other adjustments that may impact its operations.
Reconciliations of each non-GAAP measure presented in this news release to the most directly comparable financial measure calculated in accordance with GAAP are included in the release.
Other Terms – This news release also may contain the term pro forma underlying production. Pro forma underlying production reflects the impact of closed acquisitions and closed dispositions as of
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Table 1: Reconciliation of earnings to adjusted earnings |
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$ millions, except as indicated |
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1Q26 |
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1Q25 |
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Pre-tax |
Income tax |
After-tax |
Per share of common stock (dollars) |
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Pre-tax |
Income tax |
After-tax |
Per share of common stock (dollars) |
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Earnings |
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$ |
2,183 |
1.78 |
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2,849 |
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2.23 |
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Adjustments: |
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(Gain) loss on asset sales |
— |
— |
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— |
— |
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(64 |
) |
(41 |
) |
(105 |
) |
(0.08 |
) |
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Transaction, integration and restructuring expenses |
15 |
(3 |
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12 |
0.01 |
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53 |
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(12 |
) |
41 |
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0.03 |
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(Gain) loss in interest rate hedge1 |
9 |
(2 |
) |
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7 |
0.01 |
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(15 |
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3 |
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(12 |
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(0.01 |
) |
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Pending claims and settlements |
83 |
(20 |
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63 |
0.05 |
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(123 |
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29 |
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(94 |
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(0.08 |
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(Gain) loss on contingent liability measurement2 |
78 |
(19 |
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59 |
0.04 |
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— |
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— |
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— |
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— |
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Adjusted earnings / (loss) |
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$ |
2,324 |
1.89 |
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2,679 |
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2.09 |
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1Interest rate hedging (gain) loss from PALNG Phase 1 Investment. |
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2Related to our Surmont acquisition. |
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The income tax effects of the special items are primarily calculated based on the statutory rate of the jurisdiction in which the discrete item resides. |
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Table 2: Reconciliation of net cash provided by operating activities to cash from operations |
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$ millions, except as indicated |
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1Q26 |
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Net Cash Provided by Operating Activities |
$ |
4,295 |
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Adjustments: |
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Net operating working capital changes |
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(1,092 |
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Cash from operations |
$ |
5,387 |
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Table 3: Reconciliation of reported production to pro forma underlying production |
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MBOED, except as indicated |
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1Q26 |
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1Q25 |
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Total reported |
2,309 |
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2,389 |
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Closed Dispositions1 |
— |
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(66 |
) |
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Closed Acquisitions |
— |
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— |
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Total pro forma underlying production |
2,309 |
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2,323 |
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1Includes production related to various Lower 48 noncore dispositions. |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20260430387552/en/
Media Relations
281-293-1149
media@conocophillips.com
Investor Relations
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