ConocoPhillips (COP) Q2 2026 earnings summary

Executive summary

• Q2 2026 net income was $3.9 billion ($3.23/share), with adjusted EPS of $3.24, both up significantly year-over-year, driven by higher realized oil prices despite lower production volumes and gas prices.

• Cash from operations reached $7.2 billion, with $7.4 billion in cash provided by operating activities and $8.1 billion in cash and short-term investments at quarter-end.

• Achieved $5 billion asset disposition target ahead of schedule, including sale of noncore Lower 48 assets for $1.7 billion.

• Shareholder distributions doubled to $3.0 billion, including $2.0 billion in share repurchases and $1.0 billion in dividends.

• Signed strategic agreements for low-cost supply opportunities in the Middle East, including a 42% interest in a Kirkuk, Iraq JV, and expanded LNG offtake portfolio to 12 MTPA.

Financial highlights

• Q2 2026 earnings per share were $3.23 (adjusted EPS $3.24), up from $1.56 (adjusted $1.42) in Q2 2025.

• Cash from operations was $7.2 billion in Q2 2026, with free cash flow of $4.2 billion after $3 billion CapEx.

• Total production was 2,248 MBOED, down 143 MBOED year-over-year, mainly due to field decline and asset sales.

• Shareholder distributions increased to $3 billion, including $2 billion in share repurchases and $1 billion in dividends.

• Ended quarter with $8.1 billion in cash and short-term investments, $1.2 billion in long-term investments.

Outlook and guidance

• Full-year guidance reaffirmed; Q3 2026 production expected between 2.29–2.32 MMBOED.

• Capital expenditure guidance for 2026 is $12–$12.5 billion.

• Targeting 45% of CFO returned to shareholders for the year, with higher distributions expected in H2.

• $7 billion free cash flow inflection expected by 2029, with structurally declining CapEx and reinvestment rates.

• Estimated full-year effective tax rate of 35–37%.