ConocoPhillips (NYSE: COP) reported robust second-quarter 2026 financial results on August 6, 2026, posting earnings of $3.9 billion, or $3.23 per share, nearly doubling the $2.0 billion, or $1.56 per share, recorded in the same period a year earlier. Adjusted earnings for the quarter reached $4.0 billion, or $3.24 per share, compared with adjusted earnings of $1.8 billion, or $1.42 per share, in the second quarter of 2025. The company generated cash provided by operating activities of $7.4 billion and cash from operations (CFO) of $7.2 billion during the quarter.
A significant driver of the improved financial performance was a sharp increase in realized commodity prices: ConocoPhillips' total average realized price reached $62.33 per barrel of oil equivalent (BOE), representing a 36% increase compared with the $45.77 per BOE achieved in the second quarter of 2025. Total company production for the quarter stood at 2,248 thousand barrels of oil equivalent per day (MBOED), a decrease of 143 MBOED from the year-ago period. On a pro forma underlying basis, adjusting for closed acquisitions and dispositions, production declined 98 MBOED or 4% year-over-year, as organic growth from the Lower 48 was more than offset by the impact of the Middle East conflict on Qatar operations and higher Surmont royalties.
Lower 48 production reached 1,479 MBOED, with the Delaware Basin contributing 720 MBOED, the Eagle Ford 363 MBOED, the Midland Basin 202 MBOED, and the Bakken 189 MBOED. Chairman and Chief Executive Officer Ryan Lance highlighted the company's disciplined capital allocation and strategic progress. "ConocoPhillips delivered strong second-quarter results with exceptional operational performance, record production from our peer-leading Permian position and disciplined execution across the business, all while continuing to progress our strategic priorities," Lance said.
"We doubled our quarterly share repurchases, achieved our $5 billion asset disposition target ahead of schedule, secured low cost of supply opportunities in the Middle East, and increased our LNG offtake to 12 MTPA. We are executing well, delivering on our strategy, and remain on track to achieve our $7 billion free cash flow inflection by 2029." Shareholder distributions for the quarter totaled $3.0 billion, including $2.0 billion in share repurchases and $1.0 billion through the ordinary dividend. The company stated it is on track to return 45% of CFO to shareholders in 2026.
On the strategic front, ConocoPhillips signed agreements to sell noncore Lower 48 assets for $1.7 billion, a transaction that closed in July and allowed the company to reach its $5 billion asset disposition target ahead of schedule. The company also signed an agreement to acquire a 42% interest in a joint venture in the Kirkuk area of northern Iraq, gaining access to long-life conventional redevelopment opportunities, with closing expected by year-end 2026. Additionally, ConocoPhillips executed an agreement for re-entry into Syria, leveraging existing infrastructure to restore and increase production at onshore fields.
On the LNG front, the company advanced its commercial strategy by signing additional offtake agreements for 2 million tonnes per annum (MTPA), bringing its total LNG offtake to 12 MTPA. The company ended the quarter with cash and short-term investments of $8.1 billion and long-term investments of $1.2 billion. For the first six months of 2026, ConocoPhillips reported earnings of $6.1 billion, or $5.00 per share, compared with $4.8 billion, or $3.79 per share, in the first half of 2025.
Six-month adjusted earnings reached $6.3 billion, or $5.13 per share. The total realized price for the period was $56.37 per BOE, 14% higher than the $49.54 per BOE recorded in the first half of 2025. Cash from operations for the first half totaled $12.6 billion.
Looking ahead, ConocoPhillips guided for third-quarter 2026 production in the range of 2.29 to 2.32 million barrels of oil equivalent per day, and reaffirmed all full-year guidance items. ConocoPhillips declared a third-quarter ordinary dividend of $0.84 per share, payable September 1, 2026, to stockholders of record as of August 17, 2026. Source: ConocoPhillips press release via BusinessWire, August 6, 2026.
Source: conocophillips.com