ConocoPhillips Beats Profit Estimates for Q1

ConocoPhillips has reported $2.3 billion in adjusted net income and $2.2 billion in net income for the first quarter (Q1).

While the figures fell year-on-year as lower volumes and lower prices for Permian natural gas production more than offset lower costs, earnings per share adjusted for nonrecurring items beat the Zacks Consensus Estimate, $1.89 versus $1.73.

Net profit dropped $600 million from the same three-month period last year. Adjusted net profit declined $400 million year-over-year.

The Houston, Texas-based company is maintaining its current dividend rate, declaring $0.84 per share for Q2. In Q1, it distributed $2 billion to shareholders including $1 billion in share repurchases.

ConocoPhillips averaged 2.31 million barrels of oil equivalent a day (MMboed) in production in the January-March 2026 quarter, down 80,000 boed year-on-year. "After adjusting for closed acquisitions and dispositions, first-quarter 2026 production decreased 14 Mboed or 1 percent from the same period a year ago", ConocoPhillips said in its quarterly report.

"Organic growth from Lower 48 was more than offset by downtime, which includes the impact of the Middle East conflict on Qatar, and higher Surmont [Canadian oil sands] royalties".

The contiguous United States, or the Lower 48, accounted for 1.45 MMboed of Q1 2026 output: 698,000 boed from the Delaware Basin, 200,000 boed from the Midland Basin, 367,000 boed from the Eagle Ford and 183,000 boed from the Bakken.

Realized prices averaged $50.36 per boe, down 6 percent from Q1 2025.

"Amid ongoing macro volatility, ConocoPhillips delivered another quarter of strong financial and operational performance", said chair and chief executive Ryan Lance. "We remain focused on delivering our value proposition: operating safely; maximizing our returns on and of capital, reiterating our objective to return 45 percent of CFO [cash from operations] to shareholders this year; and driving peer-leading free cash flow growth".

Cash provided by operating activities in Q1 2026 was $4.3 billion. "Excluding a $1.1 billion change in operating working capital, ConocoPhillips generated CFO of $5.4 billion", the company said.

Cash and short-term investments stood at $6.7 billion at the end of Q1 2025, while long-term investments totaled $1.2 billion. It paid $100 million in mature debt.

For Q2 ConocoPhillips expects to produce 2.19-2.22 MMboed. The guidance excludes Qatar "given uncertainty surrounding the conflict in the Middle East", ConocoPhillips said.

Full-year production is pegged at 2.3-2.33 MMboed. That accounts for 20,000 boed of projected production loss from Qatar in Q2 and 15,000 boed in "annual royalty rate adjustment at Surmont due to higher oil prices", it said.

"Capital spending for 2026 is expected to be $12 to $12.5 billion, including incremental Permian activity", ConocoPhillips added. "The range reflects uncertainty around the macro environment and North Field East and North Field South capital timing in Qatar".

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