One of the world's largest independent oil and gas producers, ConocoPhillips focuses on finding and extracting crude oil, natural gas, natural gas liquids, and liquefied natural gas rather than running refineries or gas stations. The company was born in 2002 from a merger of Conoco Inc. and Phillips Petroleum Company, the latter founded in 1917 by brothers Frank and L.E. Phillips. Its Conoco name traces to the Continental Oil and Transportation Company, founded in 1875, which distributed kerosene to pioneers in the American West.
ConocoPhillips Q2 2026 earnings doubled to $3.9B as a 55% increase in crude prices offset a 6% production decline.
A sharp rise in crude prices transformed ConocoPhillips' second quarter. rose 36.8% to $19.2 billion and more than doubled to $3.23, driven by a 55% increase in average realized crude oil prices to $99.40 per barrel that more than offset a 6% drop in production. The company also achieved its $5 billion disposition target ahead of schedule, signing agreements to sell $1.7 billion in noncore assets.
Key takeaways
Second-quarter rose 99.4% to $3,931 million, as a $1.96 billion earnings increase from higher oil prices outweighed a 6% decline in total production to 2,248 .
Average realized crude oil prices rose 55% to $99.40 per barrel, the primary driver of the earnings increase, while production fell due to normal field decline partly offset by new wells in the and other regions.
earnings more than doubled to $2.6 billion, benefiting from higher crude and prices and $155 million in production expense efficiencies.
Section summaries
Management's Discussion and Analysis
Higher oil prices drove a $1.96B earnings increase in Q2 2026, while production fell 6% and the company achieved its $5B disposition target.
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Second-quarter 2026 earnings rose to $3.9 billion, driven by a 55% increase in average realized crude oil prices to $99.40 per barrel.
Production and operating expenses fell $141 million in the quarter, reflecting increased efficiencies across operations.
The company signed agreements to sell noncore assets for $1.7 billion, achieving its $5 billion disposition target ahead of the year-end 2026 deadline.
rose 113.3% to $7,434 million, funding $3.0 billion in capital investment and $3.0 billion in shareholder returns.
What changed
The $5 billion disposition target, flagged as a key watch item in prior quarters, was achieved ahead of schedule with the signing of $1.7 billion in noncore asset sales, leaving no remaining balance to track.
Full-year 2026 production was previously reduced by 35 to 2.295–2.325 MMBOED in Q1 2026; Q2 production of 2,248 MBOED came in below the low end of that range, driven by normal field decline.
The over $1 billion in cost reductions and margin enhancements targeted by year-end 2026, announced in Q2 2025, showed progress with $155 million in production expense efficiencies and a $141 million decline in total production and operating expenses this quarter.
ended Q2 at $22.8 billion, up 2.5% sequentially from $22.3 billion, moving further from the $5 billion reduction target that was reset from a post-Marathon base of $23.3 billion at year-end 2024.
What to watch
Q3 2026 production against the 2.295–2.325 MMBOED full-year after Q2 came in below the low end, and whether normal field decline continues to outpace new well additions.
Realized crude oil prices after the 55% increase to $99.40 per barrel, and whether this level is sustained into the second half of 2026.
Use of the $7.4 billion in quarterly , particularly the pace of the remaining $6 billion in planned 2026 shareholder returns after $3.0 billion was returned this quarter.
movement from $22.8 billion as the company pursues its $5 billion reduction target from the post-Marathon base, with debt now higher than the prior quarter.
Total production decreased 6% to 2,248 , primarily due to normal field decline, partly offset by new wells in the and other regions.
earnings more than doubled to $2.6 billion, benefiting from higher crude and NGL prices and $155 million in production expense efficiencies.
Production and operating expenses fell $141 million in the quarter, reflecting increased efficiencies across operations.
The company signed agreements to sell noncore assets for $1.7 billion, achieving its $5 billion disposition target ahead of schedule.
Cash provided by operating activities was $7.4 billion, funding $3.0 billion in capital investment and $3.0 billion in shareholder returns via buybacks and dividends.
Quantitative and Qualitative Disclosures About Market Risk
Information about market risks for the six months ended June 30, 2026 does not differ materially from that discussed under Item 7A in our 2025 Annual Report on Form 10-K.
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Information about market risks for the six months ended June 30, 2026 does not differ materially from that discussed under Item 7A in our 2025 Annual Report on Form 10-K.
ConocoPhillips has elected to use a $1 million threshold for disclosing certain proceedings arising under federal, state or local environmental laws when a governmental authority is a party. ConocoPhillips believes proceedings under this threshold are not material to ConocoPhill…
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ConocoPhillips has elected to use a $1 million threshold for disclosing certain proceedings arising under federal, state or local environmental laws when a governmental authority is a party. ConocoPhillips believes proceedings under this threshold are not material to ConocoPhillips' business and financial condition. Applying this threshold, there are no such proceedings to disclose for the quarter ended June 30, 2026. See Note 8 for information regarding other legal and administrative proceedings.