ConocoPhillips 8-K
PositiveEarningsNew guidance
Higher realized prices lifted earnings despite production declines tied to Middle East conflict effects on Qatar and higher Surmont royalties.
Filed 2026-08-06 07:23 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with Q3 production guidance and a quarterly dividend. Earnings rose as higher realized prices more than offset lower production; the company reaffirmed its full-year guidance items. It also declared a $0.84 per-share Q3 dividend.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Sales and other operating revenues | $19.2B | $14.0B | 36.8% |
| Net income attributable to ConocoPhillips (earnings) | $3.93B | $1.97B | 99.4% |
| Adjusted earnings (non-GAAP) | $3.95B | $1.79B | 120% |
| Diluted EPS | $3.23 | $1.56 | 107% |
| Adjusted diluted EPS (non-GAAP) | $3.24 | $1.42 | 128% |
| Cash provided by operating activities | $7.43B | $3.49B | 113% |
| Cash from operations (non-GAAP) | $7.18B | — | — |
| Production (thousand barrels of oil equivalent per day) | 2,248 | 2,391 | -6.0% |
- Realized price was $62.33/BOE, up 36% Y/Y, driving higher earnings. Production fell 4% on a pro forma basis, as Lower 48 growth was more than offset by Middle East conflict effects on Qatar and higher Surmont royalties.
- Shareholder distributions doubled to $3.0B: $2.0B in repurchases and $1.0B in ordinary dividends. Ending shares outstanding fell 1.4% Q/Q, to 1.201B from 1.218B. The $0.84 Q3 dividend is payable 9/1/2026 to holders of record 8/17/2026.
- The $1.7B sale of noncore Lower 48 assets closed in July, completing the $5B disposition target ahead of schedule. ConocoPhillips agreed to acquire a 42% interest in a Kirkuk-area joint venture, with closing expected by year-end 2026; it also signed a Syria re-entry agreement and added 2 MTPA of LNG offtake, bringing the total to 12 MTPA.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Production | Q3 2026 | 2.29–2.32 million barrels of oil equivalent per day | — | — |
| Return of capital / CFO | FY2026 | 45% | — | — |
| Free cash flow (non-GAAP) inflection goal | By 2029 | $7B | — | — |
Full-year guidance items remain unchanged; figures were not restated.
Investor Takeaways
- Track Q3 production against the 2.29–2.32 million-barrel-per-day range.
- Watch for completion of the Kirkuk-area joint venture acquisition by year-end 2026 and progress on the Syria re-entry.
- Progress toward the $7B free cash flow inflection goal by 2029 and the 45% return-of-CFO target for 2026 remain longer-term metrics to monitor.
The summary is written by an AI model reading the filing.
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