ConocoPhillips

ConocoPhillips reported first-quarter 2026 adjusted earnings of $1.89 per share, CFO of $5.4 billion, capital expenditures of $2.9 billion, and free cash flow of $2.4 billion. Total production was 2.309 million boe/d, including 1.453 million boe/d in the Lower 48, which management said represented 4% year-over-year growth on an underlying basis. The company returned $2 billion to shareholders, with $1 billion in ordinary dividends and $1 billion in share repurchases. Cash and short-term investments ended the quarter at $6.7 billion, plus $1.2 billion in liquid long-term investments. For the full year, production midpoint guidance is 2.31 million boe/d, operating costs are guided to $10.2 billion, and capital spending is guided to $12 billion-$12.5 billion. For Q2, production midpoint guidance is 2.2 million boe/d. Management said the production and spending updates reflect Qatar being excluded from second-quarter guidance, a Surmont royalty-rate adjustment, planned maintenance, and modest added Permian and non-operated activity.

Ryan Lance emphasized that the quarter showed strong financial and operational execution despite a volatile macro backdrop. He framed the Middle East conflict as reinforcing the importance of energy security and said ConocoPhillips is keeping its priorities unchanged: grow the base dividend competitively, protect the investment-grade balance sheet, and return 45% of CFO to shareholders before disciplined reinvestment. He also highlighted Lower 48 efficiency gains, Willow progress, and LNG optionality as key long-term value drivers.

Andrew O’Brien focused on the hard numbers and the updated outlook. He said Q1 produced 2.309 million boe/d, $1.89 per share in adjusted earnings, $5.4 billion of CFO, and $2.9 billion of capex, with $2 billion returned to shareholders and quarter-end liquidity of $6.7 billion in cash and short-term investments plus $1.2 billion in liquid long-term investments. For full-year guidance, he pointed to unchanged $10.2 billion operating costs, a capital-spending range of $12 billion-$12.5 billion, and a production midpoint of 2.31 million boe/d. He said the company remains unhedged in oil and LNG to capture upside and expects CFO to be materially higher than at the start of the year.

Analysts pressed management on the oil and LNG macro, with concern centered on how the Middle East conflict could affect prices, demand, and supply chains. Management said about 10 million barrels per day of production has been offline, refinery run cuts are absorbing much of the shortfall, and global oil demand is now seen as flat year over year with downside risk if the conflict persists. On LNG, they said roughly 20% of global LNG has been constrained by Qatar disruptions, that shortages could last for years, and that NFE/NFS construction delays are likely measured in months rather than a specific resolved timetable. Questions also focused on Alaska, Permian capital, buybacks/dividend policy, and asset sales; management reiterated Willow is 50% complete, the added Permian spend is mainly to preserve operational efficiency, and the company will not sell assets without full value.