ConocoPhillips has reported first-quarter 2026 (Q1 2026) earnings of $2.2bn, a 21% decline compared to $2.8bn in the same quarter of the previous year.
Earnings per share (EPS) for the US-based oil and gas major in the reported quarter ended 31 March were $1.78, down 20% compared to $2.23 in Q1 2025.
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Adjusted earnings for Q1, excluding special items mainly related to pending claims, settlements, and a loss on a contingent liability measurement, were $2.3bn, or $1.89 per share. This compares with $2.7bn, or $2.09 per share, in the same period last year.
ConocoPhillips’ total production for the reported quarter was 2.31 million barrels of oil equivalent per day (mboe/d), 80,000 barrels of oil equivalent per day (boepd) less than in Q1 the previous year.
After adjustments for closed acquisitions and dispositions, output dropped by 14,000boepd, or 1%.
Lower 48 operations provided 1.45mboe/d, with contributions of 698,000boepd from the Delaware Basin, 200,000boepd from the Midland Basin, 367,000boepd from the Eagle Ford and 183,000boepd from the Bakken.
The average realised price per barrel of oil equivalent stood at $50.36, down 6% from $53.34 in the previous year. Earnings fell primarily due to declining gas prices in the Permian Basin and reduced production volumes, offset in part by lower costs.
ConocoPhillips chairman and CEO Ryan Lance said: “Our thoughts are with our team, partners and everyone impacted by the ongoing conflict in the Middle East. Amid ongoing macro volatility, ConocoPhillips delivered another quarter of strong financial and operational performance.
“We remain focused on delivering our value proposition: operating safely; maximising our returns on and of capital, reiterating our objective to return 45% of CFO [cash from operations] to shareholders this year; and driving peer-leading free cash flow growth.”
According to ConocoPhillips, cash provided by operating activities in Q1 2026 reached $4.3bn. After adjusting for a $1.1bn change in operating working capital, CFO was $5.4bn.
The company spent $2.9bn on capital expenditures (capex) and investments in the reported Q1.
ConocoPhillips ended the quarter with $6.7bn in cash and short-term investments and $1.2bn in long-term investments.
Looking ahead, the company is excluding Qatar from its Q2 production guidance due to uncertainty stemming from the Middle East conflict.
It projects Q2 production at 2.19–2.22mboe/d and expects full-year production to fall between 2.3mboe/d and 2.33mboe/d. This forecast incorporates a 20,000boepd annual adjustment for Qatar and a 15,000boepd annual royalty adjustment at Surmont linked to higher oil prices.
Anticipated 2026 capital spending is between $12bn and $12.5bn, including increased activity in the Permian Basin. The capital range reflects ongoing macroeconomic uncertainty and uncertain timing for North Field East and North Field South capex in Qatar.
