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ConocoPhillips Q3 Earnings Beat Estimates on Higher Commodity Prices
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Key Takeaways
COP's Q3 2026 adjusted earnings per share rose 103.1% to $3.27, beating the consensus estimate by 6.9%.
COP's average realized price increased 32% to $61.40 per Boe, supporting strong quarterly earnings.
ConocoPhillips generated $4.04 billion in free cash flow & returned $3.4 billion to shareholders in Q3 2026.
ConocoPhillips (COP - Free Report) reported adjusted earnings of $3.27 per share for the third quarter of 2026, up 103.1% from $1.61 a year earlier. The bottom line beat the Zacks Consensus Estimate of $3.06 per share by 6.9%.
Total revenues and other income of $20.06 billion increased 29.2% from $15.52 billion a year ago. The top line surpassed the Zacks Consensus Estimate of $18.38 billion by 9.1%.
Stronger quarterly results were driven by higher commodity prices. The positives were slightly offset by lower production volumes.
Total production was 2,302 thousand barrels of oil equivalent per day (Mboe/d), down 4% year over year.
Sales and other operating revenues increased to $19.44 billion from $15.03 billion in the prior-year quarter. Equity in earnings of affiliates totaled $448 million, while other income contributed $120 million. Gains on dispositions amounted to $54 million.
ConocoPhillips' average realized price reached $61.40 per barrel of oil equivalent (Boe), 32% above the year-ago level of $46.44 per Boe. Higher commodity realizations more than offset the impact of lower production and supported stronger quarterly profitability.
ConocoPhillips Reports Higher Adjusted Earnings
The company reported net income of $4 billion compared with $1.73 billion a year earlier. Excluding special items, adjusted earnings totaled $3.92 billion, up from $2.01 billion.
Third-quarter special items increased reported earnings by $83 million after tax. These primarily included the reversal of a tax reserve, partially offset by pending claims and settlements, transaction-related expenses and an interest-rate hedge adjustment.
COP's Lower 48 Operations Lead Segment Growth
Adjusted earnings from the Lower 48 segment increased to $2.49 billion from $1.31 billion in the prior-year quarter. The segment remained the largest contributor to consolidated adjusted earnings, benefiting from higher commodity prices and continued operational efficiencies.
Alaska adjusted earnings increased to $423 million from $156 million. Canada generated $187 million compared with $206 million a year ago. Europe, the Middle East and North Africa contributed $362 million, up from $328 million, while Asia Pacific adjusted earnings rose to $528 million from $309 million.
ConocoPhillips Details Production Performance
Total company production declined 97 MBoe/d year over year. Adjusting for closed acquisitions and dispositions, production decreased 40 MBoe/d, or 2%. Organic growth in the Lower 48 was more than offset by the impact of the Middle East conflict on Qatar and higher Surmont royalties.
Lower 48 production reached 1,517 MBoe/d. The Delaware Basin contributed 757 MBoe/d, followed by Eagle Ford at 369 MBoe/d, the Midland Basin at 197 MBoe/d and the Bakken at 191 MBoe/d. Management highlighted record Permian completion efficiency, with pumping hours increasing 15% from the 2025 average.
Total costs and expenses increased 11.8% to $14.08 billion from $12.59 billion in the prior-year quarter. Purchased commodity costs rose to $7.42 billion from $5.86 billion, reflecting the stronger commodity-price environment.
Production and operating expenses declined 7.3% to $2.44 billion, while selling, general and administrative expenses decreased 19.2% to $219 million. However, depreciation, depletion and amortization increased to $3.01 billion, and taxes other than income taxes rose to $648 million.
Cash provided by operating activities totaled $7.20 billion. Excluding working-capital changes, cash from operations reached $7.17 billion. The company funded $3.13 billion of capital expenditures and investments, generating approximately $4.04 billion in free cash flow.
As of Sept. 30, ConocoPhillips held $7.77 billion in cash and cash equivalents and $2.16 billion in short-term investments. Shareholder distributions totaled $3.4 billion, comprising $2.4 billion in share repurchases and $1 billion in ordinary dividends.
The company increased its quarterly ordinary dividend by 11% to 93 cents per share, payable Dec. 1, 2026.
ConocoPhillips expects fourth-quarter 2026 production between 2.32 and 2.36 million barrels of oil equivalent per day. Full-year capital expenditure and adjusted operating cost guidance remain unchanged.
Management expects 2027 capital spending to decline modestly year over year while underlying production grows at a low-single-digit rate. Lower unit operating costs and continued efficiency improvements remain priorities.
The company remains on track to return 45% of cash from operations to shareholders in 2026. Its Willow project is progressing toward first oil in early 2029, supporting management's targeted $7 billion free cash flow improvement by that year.
COP’s Zacks Rank & Other Key Picks
ConocoPhillips currently sports a Zacks Rank #1 (Strong Buy).
View the Zacks #1 Rank List
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ConocoPhillips Q3 Earnings Beat Estimates on Higher Commodity Prices
Key Takeaways
ConocoPhillips (COP - Free Report) reported adjusted earnings of $3.27 per share for the third quarter of 2026, up 103.1% from $1.61 a year earlier. The bottom line beat the Zacks Consensus Estimate of $3.06 per share by 6.9%.
Total revenues and other income of $20.06 billion increased 29.2% from $15.52 billion a year ago. The top line surpassed the Zacks Consensus Estimate of $18.38 billion by 9.1%.
Stronger quarterly results were driven by higher commodity prices. The positives were slightly offset by lower production volumes.
Total production was 2,302 thousand barrels of oil equivalent per day (Mboe/d), down 4% year over year.
ConocoPhillips Price, Consensus and EPS Surprise
ConocoPhillips price-consensus-eps-surprise-chart | ConocoPhillips Quote
COP's Revenue Growth Reflects Higher Realized Prices
Sales and other operating revenues increased to $19.44 billion from $15.03 billion in the prior-year quarter. Equity in earnings of affiliates totaled $448 million, while other income contributed $120 million. Gains on dispositions amounted to $54 million.
ConocoPhillips' average realized price reached $61.40 per barrel of oil equivalent (Boe), 32% above the year-ago level of $46.44 per Boe. Higher commodity realizations more than offset the impact of lower production and supported stronger quarterly profitability.
ConocoPhillips Reports Higher Adjusted Earnings
The company reported net income of $4 billion compared with $1.73 billion a year earlier. Excluding special items, adjusted earnings totaled $3.92 billion, up from $2.01 billion.
Third-quarter special items increased reported earnings by $83 million after tax. These primarily included the reversal of a tax reserve, partially offset by pending claims and settlements, transaction-related expenses and an interest-rate hedge adjustment.
COP's Lower 48 Operations Lead Segment Growth
Adjusted earnings from the Lower 48 segment increased to $2.49 billion from $1.31 billion in the prior-year quarter. The segment remained the largest contributor to consolidated adjusted earnings, benefiting from higher commodity prices and continued operational efficiencies.
Alaska adjusted earnings increased to $423 million from $156 million. Canada generated $187 million compared with $206 million a year ago. Europe, the Middle East and North Africa contributed $362 million, up from $328 million, while Asia Pacific adjusted earnings rose to $528 million from $309 million.
ConocoPhillips Details Production Performance
Total company production declined 97 MBoe/d year over year. Adjusting for closed acquisitions and dispositions, production decreased 40 MBoe/d, or 2%. Organic growth in the Lower 48 was more than offset by the impact of the Middle East conflict on Qatar and higher Surmont royalties.
Lower 48 production reached 1,517 MBoe/d. The Delaware Basin contributed 757 MBoe/d, followed by Eagle Ford at 369 MBoe/d, the Midland Basin at 197 MBoe/d and the Bakken at 191 MBoe/d. Management highlighted record Permian completion efficiency, with pumping hours increasing 15% from the 2025 average.
COP Faces Higher Costs Despite Operating Efficiencies
Total costs and expenses increased 11.8% to $14.08 billion from $12.59 billion in the prior-year quarter. Purchased commodity costs rose to $7.42 billion from $5.86 billion, reflecting the stronger commodity-price environment.
Production and operating expenses declined 7.3% to $2.44 billion, while selling, general and administrative expenses decreased 19.2% to $219 million. However, depreciation, depletion and amortization increased to $3.01 billion, and taxes other than income taxes rose to $648 million.
ConocoPhillips Strengthens Cash Flow & Shareholder Returns
Cash provided by operating activities totaled $7.20 billion. Excluding working-capital changes, cash from operations reached $7.17 billion. The company funded $3.13 billion of capital expenditures and investments, generating approximately $4.04 billion in free cash flow.
As of Sept. 30, ConocoPhillips held $7.77 billion in cash and cash equivalents and $2.16 billion in short-term investments. Shareholder distributions totaled $3.4 billion, comprising $2.4 billion in share repurchases and $1 billion in ordinary dividends.
The company increased its quarterly ordinary dividend by 11% to 93 cents per share, payable Dec. 1, 2026.
COP Maintains 2026 Guidance & Outlines 2027 Priorities
ConocoPhillips expects fourth-quarter 2026 production between 2.32 and 2.36 million barrels of oil equivalent per day. Full-year capital expenditure and adjusted operating cost guidance remain unchanged.
Management expects 2027 capital spending to decline modestly year over year while underlying production grows at a low-single-digit rate. Lower unit operating costs and continued efficiency improvements remain priorities.
The company remains on track to return 45% of cash from operations to shareholders in 2026. Its Willow project is progressing toward first oil in early 2029, supporting management's targeted $7 billion free cash flow improvement by that year.
COP’s Zacks Rank & Other Key Picks
ConocoPhillips currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the energy sector are Range Resources Corporation (RRC - Free Report) , Equinor ASA (EQNR - Free Report) and Eni S.p.A. (E - Free Report) . RRC, EQNR and E currently carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks Rank #1 stocks here.
Range Resources reported third-quarter 2026 adjusted earnings of 81 cents per share, surpassing the Zacks Consensus Estimate of 70 cents per share.
As of Sept. 30, 2026, RRC had total debt of $780.92 million and cash and cash equivalents of $12,000.
Equinor reported third-quarter 2026 adjusted earnings of $1.20 per share, missing the Zacks Consensus Estimate of $1.38 per share.
As of Sept. 30, 2026, EQNR had $6.30 billion of cash and cash equivalents.
Eni reported third-quarter 2026 adjusted earnings of $2.13 per share, surpassing the Zacks Consensus Estimate of $1.92 per share.
As of Sept. 30, 2026, E had total debt of €34.39 billion and cash and cash equivalents of €11.77 billion.