ConocoPhillips

What they do

ConocoPhillips explores for and produces crude oil, bitumen, natural gas, NGLs, and LNG across resource-rich unconventional plays in North America, conventional assets in North America, Europe, Africa, and Asia, oil sands in Canada, and global LNG developments. The company is headquartered in Houston, Texas, and as of June 30, 2026, had approximately 9,600 employees and total assets of $124 billion.

Revenue drivers

• Lower 48 segment — Produced 1,479 MBOED in Q2 2026, including 720 MBOED from the Delaware Basin, 202 MBOED from the Midland Basin, 363 MBOED from the Eagle Ford, and 189 MBOED from the Bakken. This is the company's largest production segment.
• Total company production — Total production was 2,248 MBOED in Q2 2026. The average realized price was $62.33 per BOE, 36% higher than the $45.77 per BOE in Q2 2025, driving higher revenues.
• LNG offtake — Commercial LNG offtake expanded from 10.2 MTPA to 12.2 MTPA in Q2 2026 (reported as 12 MTPA in the earnings release), including investments in Qatar producing assets and two projects under construction.

Recent performance

In Q2 2026, ConocoPhillips reported earnings of $3.9 billion ($3.23 per share) and adjusted earnings of $4.0 billion ($3.24 per share), up from $2.0 billion ($1.56 per share) and $1.8 billion ($1.42 per share) in Q2 2025. Cash provided by operating activities was $7.4 billion, and CFO (excluding working capital changes) was $7.2 billion. Production decreased 143 MBOED year-over-year to 2,248 MBOED, with organic Lower 48 growth offset by Middle East conflict impacts on Qatar and higher Surmont royalties. Six-month 2026 earnings were $6.1 billion ($5.00 per share). The company returned $3.0 billion to shareholders in Q2 2026, including $2.0 billion in share repurchases and $1.0 billion in dividends.

Strategy

Management maintains an unhedged, disciplined investment framework and emphasizes balance sheet strength, peer-leading distributions, and responsible ESG performance. In the second half of 2025, the company announced incremental cost reductions and margin enhancements of more than $1 billion on a run-rate basis by year-end 2026. It achieved a $5 billion disposition target ahead of schedule, signed a deal to acquire a 42% interest in a Kirkuk, Iraq joint venture, and executed an agreement for re-entry into Syria. The company is advancing its commercial LNG strategy, expanding offtake to 12 MTPA, and targeting a $7 billion free cash flow inflection by 2029.

Risks

• Commodity price volatility — Crude oil, natural gas, and NGL prices fluctuate widely; WTI ranged from $80 per barrel in January 2025 to $55 per barrel in December 2025, directly impacting revenues and cash flows.
• Geopolitical conflict in the Middle East — The ongoing conflict involving Iran has constrained production from Qatar LNG investments (approximately 4% of 2025 total production) and could disrupt operations, LNG transportation, and construction.
• Lower prices reduce reserves — Prolonged low commodity prices could limit economically producible reserves, reduce proved reserves and reserve replacement, and accelerate declines in production.
• Macroeconomic and supply chain disruptions — Global demand slowdown, OPEC+ supply increases, tariffs, inflation, and supply chain disruptions create volatility and uncertainty in operating results and financial condition.

Outlook

Management expects commodity prices to remain cyclical and volatile but believes its low cost of supply portfolio provides resilience. Full-year guidance items were reaffirmed in Q2 2026, and the company is on track to return 45% of CFO in 2026. Planned closing of the Iraq acquisition is expected by year-end 2026, and cost reduction and margin enhancement initiatives are expected to achieve more than $1 billion run-rate savings by year-end 2026.