ConocoPhillips Earns $4 Billion Despite Lower Production — Higher Prices Drive The Gain
The oil producer raised its quarterly dividend 11% to $0.93 per share and returned $3.4 billion to shareholders in the third quarter.
ConocoPhillips, which explores for and produces oil and natural gas, earned $4.0 billion in the third quarter, compared with $1.7 billion a year earlier, according to its Thursday SEC filing. Stronger selling prices outweighed lower production, the company said, while a tax-reserve reversal also helped reported profit.
Prices Carry The Earnings Gain
Adjusted profit, which excludes special items, was $3.9 billion, or $3.27 per share, versus $2.0 billion, or $1.61 per share, in the year-earlier quarter. Reported earnings per share rose to $3.34 from $1.38.
The company received an average $61.40 per barrel of oil equivalent, 32% above the year-earlier $46.44. Daily output was 2,302 thousand barrels of oil equivalent, down 97 thousand; stripping out completed acquisitions and asset sales, production declined 2%. Growth from existing Lower 48 operations was outweighed by the Middle East conflict's effect on Qatar and higher royalties at Surmont.
The Houston-based producer operates across North America, Europe, Africa and Asia, with businesses spanning conventional fields, unconventional resources, Canadian oil sands and liquefied natural gas. Its largest segment, the Lower 48, supplied 67% of consolidated liquids production in 2025.
Lower 48 production averaged 1,517 thousand barrels of oil equivalent daily. The Delaware Basin supplied 757 thousand, the Midland Basin 197 thousand, Eagle Ford 369 thousand and Bakken 191 thousand.
Cash Funds Buybacks And Dividends
Shareholders received $3.4 billion during the quarter: $2.4 billion in buybacks and $1.0 billion in dividends. The company increased its quarterly dividend 11% to $0.93 per share, starting with the fourth-quarter payment.
Operating activities generated $7.2 billion in cash. Asset sales added $1.6 billion, while capital projects and investments consumed $3.1 billion. The company's reconciliation put free cash flow—cash from operations remaining after capital expenditures and investments—at $4,039 million.
ConocoPhillips said it remained on track to return 45% of cash from operations to shareholders in 2026. COP shares rose about 1% to $137.06 in Friday trading.
Willow Advances Toward First Oil
ConocoPhillips expects fourth-quarter daily production of 2.32 million to 2.36 million barrels of oil equivalent. Its full-year forecasts for capital spending and adjusted operating costs remain unchanged.
At Willow, more than 75% of module fabrication was complete, with first oil still targeted for early 2029. Surmont Pad 104W-B in Canada began production ahead of schedule and below budget. Permian completion work achieved record efficiency, with pumping hours 15% above the prior-year average, and the commercial portfolio of liquefied natural gas purchase commitments expanded to 13 million tonnes annually.
President and CEO Andy O’Brien said the company remained on track for a $7 billion free-cash-flow increase by 2029 and expected further cash-flow growth into the next decade. “Importantly, 2029 is not the endpoint,” O’Brien said.
The increased $0.93 quarterly dividend is payable December 1, 2026.
Sources
- 8-K Filing — CONOCOPHILLIPS (COP) — SEC EDGAR
- Exhibit cop-20261105x8kexx991.htm — CONOCOPHILLIPS 8-K exhibit — SEC EDGAR
- Exhibit cop-20261105x8kexx992.htm — CONOCOPHILLIPS 8-K exhibit — SEC EDGAR
- ConocoPhillips Q3 2026 earnings more than double on higher prices — qz.com
- ConocoPhillips Targets $7 Billion Free Cash Flow Inflection by 2029, Raises Dividend 11% — benzinga.com
- ConocoPhillips raises dividend by 11% to $0.93 (COP:NYSE) | Seeking Alpha — seekingalpha.com
- ConocoPhillips Beats Estimates on Higher Oil Prices, Raises Dividend — Reuters
- ConocoPhillips outlines $7B free cash flow inflection by 2029 and raises quarterly dividend 11% (NYSE:COP) | Seeking Alpha — seekingalpha.com
