ConocoPhillips — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported third-quarter 2026 earnings of $4.0 billion ($3.34 per share), compared to $1.7 billion ($1.38 per share) in the same period in 2025.
• Adjusted earnings were $3.9 billion ($3.27 per share), compared to $2.0 billion ($1.61 per share) in the third quarter of 2025.
• Cash provided by operating activities and cash from operations (CFO) totaled $7.2 billion.
• Free cash flow was $4.0 billion, calculated as $7.2 billion in CFO less $3.1 billion in capital expenditures and investments.
• Total average realized price was $61.40 per BOE, a 32% increase from $46.44 per BOE in the third quarter of 2025.
• Received $1.6 billion in disposition proceeds from the sale of noncore assets.
• Ended the quarter with $10.4 billion in cash and short-term investments and $1.1 billion in long-term investments.

Guidance and Future Outlook:

• Fourth-quarter 2026 production is expected to be between 2.32 and 2.36 million barrels of oil equivalent per day.
• Full-year capital expenditures and adjusted operating cost guidance remain unchanged.
• Company is on track to deliver a peer-leading $7 billion free cash flow inflection by 2029.
• Management targets a 45% return of CFO for 2026.

Business Segments and Product Lines:

• Total company production was 2,302 MBOED, a decrease of 97 MBOED year-over-year; organic growth from Lower 48 was offset by Middle East conflict impacts on Qatar and higher Surmont royalties.
• Lower 48 production was 1,517 MBOED, comprising 757 MBOED from the Delaware Basin, 197 MBOED from the Midland Basin, 369 MBOED from the Eagle Ford, and 191 MBOED from the Bakken.
• Commercial LNG offtake portfolio expanded to 13 MTPA.
• Willow project module fabrication scope is over 75% complete, with first oil on track for early 2029.
• Surmont Pad 104W-B in Canada achieved first production ahead of schedule and under budget.
• Realized record Permian completion efficiency with 15% more pumping hours than the prior year average.

Market and Competitive Landscape:

• Management describes the company as having the "deepest, highest-quality upstream portfolio in the sector."
• The company aims to deliver continued CFO and free cash flow growth at an advantaged reinvestment rate well into the next decade.

Risks and Challenges:

• Production decreased due to the impact of the Middle East conflict on Qatar and higher Surmont royalties.
• Special items for the quarter primarily reflect the reversal of a tax reserve.

Management Commentary and Tone:

• Andy O'Brien, President and CEO, stated the company is executing its differential strategy with strong operational and financial performance across the portfolio.
• Management highlighted capturing efficiencies across Lower 48 assets, growing the strategic commercial LNG offtake portfolio, and advancing Willow critical path items.
• The tone emphasized strengthening the balance sheet and progress toward the 45% return of CFO target.

Other Key Points:

• Quarterly ordinary dividend increased by 11% to $0.93 per share, effective for the fourth quarter, payable December 1, 2026, to stockholders of record on November 16, 2026.
• Total shareholder distributions for the quarter were $3.4 billion, consisting of $2.4 billion in share repurchases and $1.0 billion in ordinary dividends.
• The company funded $3.1 billion in capital expenditures and investments.