ConocoPhillips has reported first-quarter 2026 earnings of US$2.2 billion (AU$3.36 billion), as lower production volumes amid international global tensions impacted results.
The company’s first quarter earnings was down from the prior-year results of US$2.8 billion, primarily due to lower gas prices in Permian and lower volumes, partially offset by lower costs. On an adjusted basis, excluding special items such as pending claims and settlements, the company’s earnings sat at US$2.3 billion.
Despite the year-on-year dip, Chairman and CEO Ryan Lance remained positive on the company’s operational resilience.
“Amid ongoing macro volatility, ConocoPhillips delivered another quarter of strong financial and operational performance,” Lance said.
“We remain focused on delivering our value proposition: operating safely; maximising our returns on and of capital, reiterating our objective to return 45 per cent of CFO to shareholders this year; and driving peer-leading free cash flow growth.”
The company generated US$4.3 billion in cash from operating activities during the quarter.
ConocoPhillips declared a second-quarter ordinary dividend of 84 cents per share and reaffirmed its commitment to return 45 per cent of its cash from operations to shareholders this year.
In the first quarter alone, the firm distributed US$2 billion through dividends and share buybacks.
Total production for the quarter reached 2,309 thousand barrels of oil equivalent per day (MBOED).
While the company saw organic growth in its Lower 48 US assets, boosted by enhanced drilling efficiencies, this was offset by downtime elsewhere. Notably, the ongoing conflict in the Middle East has impacted production in Qatar, leading the company to exclude Qatari volumes from its upcoming second-quarter guidance.
In Alaska, the company reported a successful winter construction season for its Willow project, which has now reached the 50 per cent completion milestone.
Looking ahead, ConocoPhillips has tightened its full-year production guidance to between 2.295 and 2.325 MMBOED, accounting for the Middle East uncertainty and higher royalty rates in its Canadian Surmont operations.
Capital spending for the year is tipped to land between US$12 billion and US$12.5 billion. The range reflects uncertainty around the macro environment and North Field East and North Field South capital timing in Qatar.
