COP · ConocoPhillips

ConocoPhillips delivered Q1 2026 results amid macro volatility and Middle East conflict impacts, reporting GAAP net income of $2.2 billion ($1.78/share), down from $2.8 billion ($2.23/share) in Q1 2025, primarily due to lower gas prices in Permian and reduced volumes, partially offset by lower costs. Adjusted earnings of $2.3 billion ($1.89/share) excluded special items related to pending claims, settlements, and a contingent liability loss. Production totaled 2,309 MBOED, a 80 MBOED decline YoY, with organic Lower 48 growth offset by Qatar downtime and higher Surmont royalties; Lower 48 output hit 1,453 MBOED led by Delaware Basin at 698 MBOED. Realized price averaged $50.36/BOE, 6% below prior year. Strong cash generation included $4.3 billion operating cash flow ($5.4 billion CFO excluding working capital), funding $2.9 billion capex, $1.0 billion share repurchases, $1.0 billion dividends, and $0.1 billion debt retirement. CEO Ryan Lance emphasized safe operations, 45% CFO return to shareholders, and peer-leading free cash flow growth. Guidance updates exclude Qatar in Q2 (2.185-2.215 MMBOED) and full-year (2.295-2.325 MMBOED, with 20 MBOED Qatar adjustment and 15 MBOED Surmont royalty tweak); capex $12-12.5 billion reflects Permian ramp and Qatar project timing uncertainty. Highlights include Willow at 50% complete, Alaska exploration success, enhanced Lower 48 laterals, and Equatorial Guinea LNG extension.