ConocoPhillips reported higher third-quarter 2026 earnings and cash generation, while increasing its quarterly dividend by 11%. The oil and gas producer also returned $3.4 billion to shareholders during the quarter through dividends and share repurchases, and said it remains on track to return 45% of cash from operations to shareholders in 2026.
Operationally, production was lower than a year earlier, although Lower 48 output grew organically. The company also reported progress on its Willow project in Alaska and an expansion of its commercial liquefied natural gas (LNG) offtake portfolio.
Financial results and shareholder returns
- ConocoPhillips earned $4.0 billion, or $3.34 per share, compared with $1.7 billion, or $1.38 per share, in the third quarter of 2025.
- Excluding special items, adjusted earnings were $3.9 billion, or $3.27 per share, versus $2.0 billion, or $1.61 per share, a year earlier. The company said special items primarily reflected the reversal of a tax reserve.
- Cash from operations was $7.2 billion for the quarter.
- The company distributed $3.4 billion to shareholders: $2.4 billion through share repurchases and $1.0 billion through its ordinary dividend. It said it remains on track to return 45% of cash from operations in 2026.
- The quarterly ordinary dividend is rising 11% to $0.93 per share. The increased payment is scheduled for Dec. 1, 2026, to shareholders of record on Nov. 16.
Production, projects and portfolio
- Total production averaged 2.302 million barrels of oil equivalent per day in the quarter, down 97,000 barrels per day from a year earlier. Excluding the effects of acquisitions and dispositions, the decline was 40,000 barrels per day, or 2%.
- Lower 48 production averaged 1.517 million barrels of oil equivalent per day. Organic growth in the Lower 48 was more than offset by the impact of the Middle East conflict on Qatar and higher royalties at Surmont.
- At the Willow project in Alaska, module fabrication was more than 75% complete. The company remains on track for first oil in early 2029.
- ConocoPhillips reported record Permian completion efficiency, with 15% more pumping hours than its prior-year average.
- The company said production began ahead of schedule and under budget at Surmont Pad 104W-B in Canada.
- Its commercial LNG offtake portfolio grew to 13 million tonnes per annum.
Balance sheet and outlook
- ConocoPhillips ended the quarter with $10.4 billion in cash and short-term investments and $1.1 billion in long-term investments.
- The company said it remains on track to deliver a $7 billion free-cash-flow inflection by 2029. It described 2029 as a milestone rather than an endpoint, with its longer-term aim being continued cash-from-operations and free-cash-flow growth.
The dividend increase raises the regular cash payment to shareholders, while the quarter’s repurchases brought total distributions to $3.4 billion. The production figures show a modest year-over-year decline after adjusting for portfolio changes, despite Lower 48 organic growth; the company attributed the shortfall to Qatar-related impacts and higher Surmont royalties.