ConocoPhillips (COP) Q2 2026 earnings summary

Executive summary

• Q2 2026 net income was $3.9 billion ($3.23/share), with adjusted earnings of $4.0 billion ($3.24/share), 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 disposition target ahead of schedule, including sale of noncore Lower 48 assets for $1.7 billion.

• Expanded LNG offtake portfolio to 12 MTPA and signed strategic agreements for low-cost supply opportunities in the Middle East, including a 42% interest in a Kirkuk, Iraq joint venture expected to close by year-end.

• CEO Ryan Lance announced retirement effective September 1, with Andy O'Brien named as successor and Konnie Haynes-Welsh as new CFO.

Financial highlights

• Q2 2026 earnings per share rose to $3.23 from $1.56 in Q2 2025; adjusted EPS increased to $3.24 from $1.42.

• Q2 production reached 2,248,000 bpd, exceeding guidance, though down 143 MBOED year-over-year due to field decline and asset sales.

• Cash from operations was $7.2 billion in Q2, with ending cash and short-term investments of $8.1 billion, plus $1.2 billion in long-term investments.

• Free cash flow totaled $4.2 billion after $3 billion CapEx; six-month CFO was $12.6 billion.

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

Outlook and guidance

• Full-year guidance reaffirmed; Q3 2026 production expected between 2.29–2.32 MMBOED.

• Targeting 45% of CFO returned to shareholders for the year, with higher distributions expected in H2.

• On track for ~$7 billion free cash flow improvement by 2029, doubling last year’s free cash flow.

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

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