ConocoPhillips (COP) Q3 2026 earnings summary

Executive summary

• Q3 2026 net income was $4.001B and adjusted earnings were $3.918B, or $3.34 and $3.27 per share, respectively; higher realized prices partly offset lower volumes.

• Cash from operations was $7.195B and free cash flow was $4.039B; shareholder distributions totaled $3.4B.

• Production was 2,302 MBOED, down 97 MBOED YoY; excluding closed acquisitions and dispositions, the decline was 40 MBOED, or 2%.

• Operational milestones included record Permian completion efficiency, Surmont Pad 104W-B ahead of schedule and under budget, and Willow on track for early 2029 startup.

• The long-term target is a ~$7B FCF inflection by 2029, with CFO and FCF growth supported by lower reinvestment.

Financial highlights

• Adjusted EPS was $3.27 versus $1.61 in Q3 2025; adjusted earnings were $3.918B versus $2.007B.

• Average realized price increased 32% YoY to $61.40/BOE; Q3 revenue was $19.435B versus $15.031B.

• Cash from operations was $7.195B, capital expenditures and investments were $3.133B, and FCF was $4.039B.

• Shareholder distributions totaled $3.4B: $2.4B in repurchases and $1.0B in ordinary dividends.

• The $5B disposition program was completed, including $1.6B of Q3 proceeds.

Outlook and guidance

• Q4 production guidance is 2.32–2.36 MMBOED; FY26 guidance is 2.295–2.325 MMBOED.

• FY26 capital expenditure guidance is $12.0–$12.5B; DD&A is $11.7–$11.9B and adjusted operating costs are ~$10.2B.

• Q4 turnarounds are expected to reduce production by ~20 MBOED, primarily in Equatorial Guinea; the effective tax rate is estimated at 35–37%.

• Preliminary 2027 outlook calls for modestly lower capital and unit costs, low-single-digit underlying production growth led by Lower 48, and returns of 45% of CFO.

• The 2029 FCF target is ~$7B versus 2025 at $70 WTI, $10 TTF and $4 Henry Hub.