ConocoPhillips has delivered a strong second-quarter performance for 2026, reporting earnings of US$3.9 billion (AU$6.0 billion) on the back of higher realised commodity prices and record output across its core US shale assets.
The company recorded earnings per share of US$3.23 for the quarter ended June 30, up significantly from US$2 billion, or US$1.56 per share, in the prior corresponding period. Adjusted earnings stood at US$4 billion, or US$3.24 per share, compared with second-quarter 2025 adjusted earnings of US$1.8 billion, or $1.42 per share.
Higher oil prices proved the primary tailwind, with the company’s total average realised price climbing 36 per cent year-on-year to US$62.33 per barrel of oil equivalent (BOE).
Strong realisations helped offset total production falling 4 per cent on an adjusted basis to 2,248 thousand barrels of oil equivalent per day (MBOED), as Middle East operational disruptions and royalty adjustments curbed net volumes.
“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,” said Ryan Lance, chairman and CEO.
“We are executing well, delivering on our strategy, and remain on track to achieve our US$7 billion free cash flow inflection by 2029.”
The surge in cash flow allowed ConocoPhillips to double its quarterly share repurchases, returning US$3 billion to shareholders via US$2 billion in buybacks and US$1 billion in ordinary dividends. Management reaffirmed it remains on track to distribute 45 per cent of annual cash from operations to investors in 2026.
The company’s milestones during the quarter included hitting its US$5 billion asset divestment target ahead of schedule, securing a 42 per cent joint venture stake in Iraq’s Kirkuk area, and expanding its global liquefied natural gas (LNG) portfolio to 12 million tonnes per annum.
ConocoPhillips declared a third-quarter dividend of US$0.84 per share and reaffirmed its full-year operational guidance. Third-quarter 2026 production is expected to be 2.29 to 2.32 million barrels of oil equivalent per day.
