ConocoPhillips (COP) Q2 2026 earnings summary

Executive summary

• Q2 2026 net income was $3.9 billion ($3.23/share), with adjusted EPS of $3.24, both up significantly year-over-year, driven by higher realized oil prices despite lower production volumes and gas prices.

• Cash from operations reached $7.2 billion, with $7.4 billion in cash provided by operating activities; $3.0 billion was returned to shareholders via $2.0 billion in share repurchases and $1.0 billion in dividends.

• Achieved $5 billion asset disposition target ahead of schedule, including $1.7 billion in Lower 48 sales, and expanded LNG offtake portfolio to 12 MTPA.

• Signed strategic agreements for low-cost supply growth in Iraq and Syria, including a 42% interest in a Kirkuk JV, with closing expected by year-end 2026.

• Ended the quarter with $8.1 billion in cash and short-term investments, $1.2 billion in long-term investments, and leverage well below 1x.

Financial highlights

• Q2 2026 production reached 2,248 MBOED, exceeding guidance, though down 143 MBOED year-over-year due to field decline and asset sales.

• Adjusted earnings were $3.24 per share; cash flow from operations totaled $7.2 billion, and free cash flow was $4.2 billion after $3 billion CapEx.

• Shareholder distributions increased to $3 billion, including $2 billion in share repurchases and $1 billion in dividends.

• Ended quarter with $8.1 billion in cash and short-term investments, plus $1.2 billion in liquid long-term investments.

• Q2 2026 sales and other operating revenues were $19.2 billion, up from $14.0 billion in Q2 2025.

Outlook and guidance

• Full-year guidance reaffirmed; Q3 2026 production expected between 2.29–2.32 MMBOED, driven by Qatar ramp and Lower 48 growth.

• Targeting 45% of CFO returned to shareholders in 2026, with an increase expected in the second half.

• $7 billion free cash flow inflection expected by 2029, doubling last year's total.

• Capital expenditure guidance for 2026 is $12–$12.5 billion.

• Estimated full-year effective tax rate of 35–37%.