CONOCOPHILLIPS (COP) Earnings History

CONOCOPHILLIPS - Q1 2026 EarningsMissed

Filed at: Apr 30, 2026, 7:31 AM EDT|Read from source

EXECUTIVE SUMMARY

ConocoPhillips reported strong financial and operational performance in Q1 2026 amidst macro volatility, driven by disciplined execution and a focus on returning capital to shareholders. The company reiterated its objective to return 45% of CFO to shareholders and highlighted progress on key projects.

POSITIVE HIGHLIGHTS

  • •

    Generated $4.3 billion in cash provided by operating activities and $5.4 billion in cash from operations (CFO).

    positive
  • •

    Distributed $2.0 billion to shareholders, including $1.0 billion through share repurchases and $1.0 billion through ordinary dividends.

    positive
  • •

    Completed successful Willow winter construction season with project achieving 50% completion.

    positive
  • •

    Enhanced Lower 48 capital efficiency by more than doubling percentage of 3-mile plus lateral length wells drilled compared with prior year.

    positive

CONCERNS & RISKS

  • •

    Reported earnings per share of $1.78, a decrease from $2.23 in the prior year's first quarter.

    negative
  • •

    Adjusted earnings per share were $1.89, down from $2.09 in the prior year's first quarter.

    negative
  • •

    Total company production decreased by 80 MBOED from the same period a year ago, with organic growth offset by downtime and higher Surmont royalties.

    negative
  • •

    The company is excluding Qatar from production guidance for the second quarter due to uncertainty surrounding the conflict in the Middle East.

    attention
  • •

    Full-year production guidance was adjusted downwards by 20 MBOED for Qatar and 15 MBOED for Surmont royalties.

    negative
  • •

    Capital spending for 2026 is expected to be $12 to $12.5 billion, reflecting uncertainty around the macro environment and Qatar project timing.

    attention

FINANCIAL METRICS

Revenue
Quarterly
N/A
N/A
Net Income
Quarterly
$2.20B
-22.3%
Prior year: $2.80B
EPS (Diluted)
Quarterly
$1.78
-20.2%
Prior year: $2.23
Operating Income
Quarterly
N/A
N/A
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Net Margin
Current Quarter
9.6%
Prior Year
11.3%
YoY Change
-169 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT GUIDANCE

FY2026

production
2,295,000—2,325,000
Mid-point: 2,310,000
"Reflects a 20 MBOED annual adjustment for Qatar and a 15 MBOED annual royalty rate adjustment at Surmont due to higher oil prices."
capital spending
12,000,000,000—12,500,000,000
Mid-point: 12,250,000,000
"Includes incremental Permian activity. The range reflects uncertainty around the macro environment and North Field East and North Field South capital timing in Qatar."

Q2 2026

production
2,185,000—2,215,000
Mid-point: 2,200,000
"Excluding Qatar from production guidance due to uncertainty surrounding the conflict in the Middle East."

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

EARNINGS CALL —

Call date
2026-04-30
Tone
N/A
Hedge density
N/A
Deflection rate
N/A

SPECIAL ITEMS & ADJUSTMENTS

Q1 2026
Primarily related to pending claims and settlements and a loss on a contingent liability measurement.
Pre-tax impact.
+$278M
$0.04 per share
Q1 2026
Transaction, integration and restructuring expenses
Pre-tax impact.
+$15M
$0.01 per share
Q1 2026
Gain (loss) in interest rate hedge
Pre-tax impact.
+$9M
$0.01 per share
Q1 2026
Pending claims and settlements
Pre-tax impact.
+$83M
$0.05 per share
Q1 2025
Gain (loss) on asset sales
Pre-tax impact.
+$0M
$0.00 per share
Q1 2025
Transaction, integration and restructuring expenses
Pre-tax impact.
+$53M
$0.03 per share
Q1 2025
Gain (loss) in interest rate hedge
Pre-tax impact.
$15M
$0.01 per share
Q1 2025
Pending claims and settlements
Pre-tax impact.
$123M
$0.08 per share
Total Impact
+$300M$0.05 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Amid ongoing macro volatility, ConocoPhillips delivered another quarter of strong financial and operational performance.

— CONOCOPHILLIPS, Q1 2026 2026 Earnings Call

We remain focused on delivering our value proposition: operating safely; maximizing our returns on and of capital, reiterating our objective to return 45% of CFO to shareholders this year; and driving peer-leading free cash flow growth.

— CONOCOPHILLIPS, Q1 2026 2026 Earnings Call

Our thoughts are with our team, partners and everyone impacted by the ongoing conflict in the Middle East.

— CONOCOPHILLIPS, Q1 2026 2026 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Average Realized Price
50.4
-5.6% YoY
Prior year: 53.3
per BOE
Lower 48 Production
1.5M
MBOED
Total Company Production
2.3M
-3.4% YoY
Prior year: 2.4M
MBOED

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.

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