ConocoPhillips — Second Quarter 2026 Earnings Summary

Financial Performance

• Reported second-quarter 2026 earnings of $3.9 billion ($3.23 per share), compared to $2.0 billion ($1.56 per share) in the second quarter of 2025.
• Adjusted earnings for the second quarter of 2026 were $4.0 billion ($3.24 per share), compared to $1.8 billion ($1.42 per share) in the second quarter of 2025.
• Six-month 2026 earnings totaled $6.1 billion ($5.00 per share), compared to $4.8 billion ($3.79 per share) for the same period in 2025.
• Six-month 2026 adjusted earnings were $6.3 billion ($5.13 per share), compared to $4.5 billion ($3.52 per share) in the first six months of 2025.
• Cash provided by operating activities was $7.4 billion in the second quarter of 2026, with cash from operations (CFO) of $7.2 billion.
• For the first six months of 2026, cash provided by operating activities was $11.7 billion, with CFO of $12.6 billion.
• Total average realized price was $62.33 per BOE in the second quarter of 2026, a 36% increase from $45.77 per BOE in the second quarter of 2025.
• Realized price for the first six months of 2026 was $56.37 per BOE, a 14% increase from $49.54 per BOE in the first six months of 2025.
• Ended the quarter with $8.1 billion in cash and short-term investments and $1.2 billion in long-term investments.
• Received $0.2 billion in disposition proceeds from the sale of noncore assets in the second quarter.

Guidance and Future Outlook

• Third-quarter 2026 production is expected to be 2.29 to 2.32 million barrels of oil equivalent per day.
• All full-year guidance items remain unchanged.
• On track to achieve a $7 billion free cash flow inflection by 2029.
• On track for a 45% return of CFO in 2026.

Business Segments and Product Lines

• Delivered total company production of 2,248 MBOED in the second quarter of 2026, a decrease of 143 MBOED from the same period a year ago.
• Lower 48 production was 1,479 MBOED, including 720 MBOED from the Delaware Basin, 202 MBOED from the Midland Basin, 363 MBOED from the Eagle Ford, and 189 MBOED from the Bakken.
• Signed agreements to sell noncore Lower 48 assets for $1.7 billion, closing in July, which contributed to achieving the $5 billion asset disposition target ahead of schedule.
• Signed an agreement to acquire a 42% interest in a joint venture in the Kirkuk area of northern Iraq, with closing expected by year-end 2026.
• Executed an agreement for re-entry into Syria to restore and increase production at onshore fields.
• Advanced commercial LNG strategy with additional 2 million tonnes per annum (MTPA) of offtake agreements, bringing total LNG offtake to 12 MTPA.
• Secured low cost of supply opportunities in the Middle East.

Market and Competitive Landscape

• Production decreased 98 MBOED (4%) on an underlying basis in the second quarter of 2026 compared to the prior year, with organic growth from the Lower 48 offset by the impact of the Middle East conflict on Qatar and higher Surmont royalties.
• Six-month underlying production decreased 57 MBOED (2%) compared to the prior year.
• Maintains a peer-leading position in the Permian.

Risks and Challenges

• Production impacted by the Middle East conflict affecting operations in Qatar.
• Higher Surmont royalties impacted production figures.
• Forward-looking statements are subject to risks including volatile commodity prices, global and regional changes in demand/supply, military conflict, security threats, operational hazards, regulatory changes, and potential disruptions to operations or supply chains.

Management Commentary and Tone

• Ryan Lance, chairman and chief executive officer, stated the company delivered strong results with exceptional operational performance and disciplined execution.
• Management highlighted progress on strategic priorities, including doubling quarterly share repurchases and achieving the $5 billion asset disposition target ahead of schedule.
• Management expressed confidence in executing well and delivering on strategy.

Other Key Points

• Declared a third-quarter ordinary dividend of $0.84 per share, payable September 1, 2026, to stockholders of record on August 17, 2026.
• Doubled share repurchases in the second quarter, increasing total shareholder distributions to $3.0 billion ($2.0 billion in repurchases and $1.0 billion in dividends).
• In the first six months of 2026, the company funded $6.0 billion of capital expenditures and investments, repurchased $3.0 billion of shares, and paid $2.1 billion in ordinary dividends.
• In the second quarter of 2026, the company funded $3.0 billion of capital expenditures and investments.