ConocoPhillips (NYSE:COP) reported first-quarter 2026 results on Thursday that exceeded analyst expectations, though shares declined more than 2% in premarket trading after the company lowered its full-year production forecast due to disruptions affecting its Qatar operations.
Adjusted earnings per share came in at $1.89, ahead of the $1.66 consensus estimate.
The Houston-based energy producer posted net income of $2.2 billion, or $1.78 per share, down from $2.8 billion, or $2.23 per share, in the same quarter of 2025. Adjusted earnings totaled $2.3 billion, compared with $2.7 billion a year earlier.
The company’s average realized price fell 6% year-over-year to $50.36 per barrel of oil equivalent, from $53.34 previously.
Special items during the quarter were mainly tied to pending claims and settlements, as well as a loss related to a contingent liability adjustment.
Total production averaged 2,309 thousand barrels of oil equivalent per day, down by 80 thousand barrels compared with a year earlier.
On an adjusted basis, excluding acquisitions and divestments, production declined by 14 thousand barrels per day, or 1%, as growth in the Lower 48 was offset by downtime and higher royalty impacts at Surmont.
Lower 48 output reached 1,453 thousand barrels per day, including 698 thousand barrels from the Delaware Basin, 367 thousand from Eagle Ford, 200 thousand from the Midland Basin, and 183 thousand from the Bakken.
Cash generated from operations totaled $4.3 billion. Excluding a $1.1 billion working capital change, operating cash flow stood at $5.4 billion. Capital expenditures and investments were $2.9 billion during the quarter.
The company returned capital to shareholders through $1.0 billion in share buybacks and $1.0 billion in dividends, while also repaying $0.1 billion of debt.
ConocoPhillips ended the quarter with $6.7 billion in cash and short-term investments, alongside $1.2 billion in long-term investments.
“Amid ongoing macro volatility, ConocoPhillips delivered another quarter of strong financial and operational performance,” said Chairman and Chief Executive Officer Ryan Lance, reiterating the company’s goal to return 45% of operating cash flow to shareholders in 2026.
The company declared a second-quarter dividend of $0.84 per share, payable June 1, 2026, to shareholders of record as of May 11, 2026, equivalent to an annualized $3.36 per share and a yield of 2.6%.
ConocoPhillips excluded Qatar from its second-quarter production guidance, citing uncertainty linked to the conflict, and expects output of 2.185 to 2.215 million barrels per day for the period.
For the full year, the company now forecasts production of 2.295 to 2.325 million barrels per day, incorporating a 20 thousand barrel adjustment for Qatar and a 15 thousand barrel royalty-related impact at Surmont.
Full-year capital spending is expected to range between $12.0 billion and $12.5 billion, including additional activity in the Permian Basin.