01—Abstract
Summary
Summary of the 10-Q filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
ConocoPhillips reported net income of $2.18 billiona for the first quarter of 2026, a decrease from $2.85 billion in the prior year period.
This decline was primarily driven by lower sales revenues due to decreased volumes and realized natural gas and NGL prices, partially offset by higher crude and bitumen prices. The company generated $4.3 billionb in cash from operating activities, a decrease from $6.1 billion in Q1 2025, attributed to receivable timing, lower production, and reduced commodity prices. Despite the lower net income, ConocoPhillips demonstrated a strong commitment to shareholder returns, distributing $2.0 billion to shareholders through $1.0 billion in share repurchases and $1.0 billion in ordinary dividends.
The company maintained a robust liquidity position with $6.7 billionc in cash, cash equivalents, restricted cash, and short-term investments. Capital expenditures for the quarter were $2.9 billion, focused on development activities across its key operating segments, particularly in the Lower 48 and Alaska.
02—Key points
Key Highlights
- Net income decreased to $2.18 billion from $2.85 billion year-over-year, impacted by lower sales volumes and commodity prices.
- Cash from operating activities declined to $4.3 billion from $6.1 billion year-over-year, reflecting timing differences, production, and price impacts.
- ConocoPhillips returned $2.0 billion to shareholders via dividends ($1.0 billion) and share repurchases ($1.0 billion).
- Capital expenditures for the quarter were $2.9 billion, primarily directed towards development activities in Lower 48 and Alaska.
- The company maintained a strong liquidity position with $6.7 billion in cash, cash equivalents, restricted cash, and short-term investments.
- Production for the quarter was 2,309 MBOED, a decrease from 2,389 MBOED in the prior year, mainly due to normal field decline.
- Geopolitical tensions in the Middle East, particularly in Qatar, led to production constraints, which the company is excluding from its Q2 production guidance.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 30, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $15.76B$16.52B | −4.6% |
| Cost of Revenue | $6.28B$6.19B | +1.5% |
| Gross Profit | $9.48B$10.33B | −8.2% |
| SG&A Expenses | $193.00M$191.00M | +1.0% |
| Net Income | $2.18B$2.85B | −23.4% |
| EPS (Basic) | $1.78$2.23 | −20.2% |
| EPS (Diluted) | $1.78$2.23 | −20.2% |
| Shares Outstanding (Basic) | 1.22B1.27B | −3.9% |
| Shares Outstanding (Diluted) | 1.22B1.27B | −3.9% |
05—Questions
Frequently Asked Questions
What was the primary driver for the decrease in ConocoPhillips' net income in Q1 2026?
The primary driver for the decrease in net income was lower sales revenues, resulting from a combination of decreased sales volumes and lower realized prices for natural gas and natural gas liquids. Higher crude oil and bitumen prices provided a partial offset.
How did ConocoPhillips manage shareholder returns in the first quarter of 2026?
ConocoPhillips demonstrated a strong commitment to returning capital to shareholders by distributing $2.0 billion in total. This included $1.0 billion in ordinary dividends and $1.0 billion through share repurchases.
What is the company's outlook regarding production in Qatar following recent geopolitical events?
Due to geopolitical tensions and resulting production constraints at QatarEnergy's facilities, ConocoPhillips is excluding Qatar from its production guidance for the second quarter of 2026. The company continues to monitor developments closely.
How did the company's capital expenditure plans evolve for 2026?
The company's capital expenditure guidance for 2026 remains between $12 billion and $12.5 billion. For the first quarter of 2026, capital expenditures and investments totaled $2.9 billion, largely focused on development activities in its key operating segments.
06—Continue