ConocoPhillips (COP) Q1 2026 earnings summary

Executive summary

• Adjusted EPS for Q1 2026 was $1.89, with net income of $2.2 billion and cash from operations (CFO) at $5.4 billion, reflecting sequential improvement from higher prices but a year-over-year decline due to lower gas prices and volumes.

• $2.0 billion was returned to shareholders, split evenly between dividends and share repurchases, with a dividend per share of $0.84.

• Major project milestones included the Willow Project reaching 50% completion and a successful Alaska exploration program.

• LNG portfolio advanced with a new tolling agreement in Equatorial Guinea, extending facility life, and continued progress at Port Arthur.

• Lower 48 production was 1,453,000 BOE/d, with peer-leading capital efficiency and increased long-lateral well drilling.

Financial highlights

• Produced 2,309,000 BOE/d in Q1 2026, with adjusted earnings of $2.68 billion and adjusted EPS of $1.89.

• CFO was $5.4 billion and free cash flow was $2.4 billion for the quarter.

• Capital expenditures totaled $2.9 billion, with over half allocated to Lower 48 unconventional plays.

• Ended the quarter with $6.7 billion in cash and $1.2 billion in liquid long-term investments.

• Dividend per share increased to $0.84 from $0.78 year-over-year.

Outlook and guidance

• Full-year 2026 production guidance midpoint updated to 2,310,000 BOE/d, reflecting impacts from Qatar exclusion and Surmont royalty adjustments.

• Second quarter production guidance midpoint set at 2,200,000 BOE/d, excluding Qatar due to Middle East conflict.

• Capital spending guidance raised to $12–$12.5 billion, up 2% at midpoint, due to increased Permian activity and non-operated spend.

• Full-year operating cost guidance unchanged at $10.2 billion, $400 million lower than 2025, with $1 billion run-rate savings targeted by year-end.

• On track for ~$7 billion FCF improvement by 2029 from major projects and cost reductions.