ConocoPhillips Beats Q2 Earnings & Revenues Estimates on Higher Prices

COP surpasses Q2 earnings and revenues estimates as higher commodity prices drive earnings growth despite lower production and reaffirmed guidance.

Zacks Equity Research

3 min read

ConocoPhillips COP reported adjusted earnings of $3.24 per share for the second quarter of 2026, up 128.2% from $1.42 a year earlier. The bottom line beat the Zacks Consensus Estimate of $2.96 per share by 9.5%.

Total revenues of $19.52 billion increased 32.4% from $14.74 billion a year ago. The top line surpassed the consensus mark of $17.54 billion by 11.29%.

The strong quarterly results were driven by higher commodity prices.

Total production was 2,248 thousand barrels of oil equivalent per day (MBOED), down 6% from the year-ago quarter.

ConocoPhillips Price, Consensus and EPS Surprise

ConocoPhillips price-consensus-eps-surprise-chart | ConocoPhillips Quote

COP's Revenue Growth Reflects Stronger Pricing

Sales and other operating revenues were $19.16 billion, up from $14 billion in the second quarter of 2025. Equity in earnings of affiliates was $239 million, while other income totaled $108 million.

ConocoPhillips’ average realized price was $62.33 per barrel of oil equivalent, 36% above the year-ago level of $45.77 per barrel of oil equivalent. The sharp pricing improvement more than offset lower production and provided the primary lift to quarterly earnings.

ConocoPhillips Posts Higher Adjusted Earnings

The company reported net income of $3.93 billion, or $3.23 per share, compared with $1.97 billion, or $1.56 per share, a year earlier. Excluding special items, adjusted earnings totaled $3.95 billion, up from $1.79 billion.

Second-quarter special items reduced earnings by $20 million after tax. This included transaction, integration and restructuring expenses, pending claims and settlements and a gain related to an interest-rate hedge associated with the Port Arthur LNG Phase 1 investment.

COP's Lower 48 Operations Drive Segment Gains

Adjusted earnings from the Lower 48 segment increased to $2.58 billion from $1.19 billion in the prior-year quarter. The segment remained the largest contributor to consolidated adjusted earnings as stronger prices supported profitability.

Alaska adjusted earnings increased to $522 million from $135 million. Canada generated $378 million, up from $149 million, while adjusted earnings from Europe, the Middle East and North Africa rose to $346 million from $237 million. Asia Pacific contributed $389 million compared with $330 million a year ago.

ConocoPhillips Details Production Performance

Total company production declined 143 MBOED. After adjusting for closed acquisitions and dispositions, production decreased 98 MBOED or 4%. Organic growth in the Lower 48 was more than offset by the impact of the Middle East conflict on Qatar and higher Surmont royalties.

Lower 48 production reached 1,479 MBOED. The Delaware Basin contributed 720 MBOED, followed by Eagle Ford at 363 MBOED, the Midland Basin at 202 MBOED and the Bakken at 189 MBOED. Management highlighted record production from its Permian position.

COP Controls Core Costs as Other Expenses Rise

Total costs and expenses increased 14.6% to $13.44 billion from $11.73 billion in the prior-year quarter. Purchased commodity costs rose to $6.71 billion from $5.09 billion, reflecting the stronger commodity-price environment.

Production and operating expenses declined 5.5% to $2.43 billion, while selling, general and administrative expenses fell 24.8% to $188 million. However, taxes other than income taxes increased to $793 million from $572 million, and depreciation, depletion and amortization rose to $2.98 billion.

ConocoPhillips Maintains Cash Flow

Cash provided by operating activities totaled $7.43 billion. Excluding working-capital changes, cash from operations reached $7.18 billion. The company funded $3 billion of capital expenditures and investments during the quarter.

COP’s Balance Sheet

As of June 30, COP had $6.57 billion in cash and cash equivalents, $1.12 billion in short-term investments and $1.16 billion in long-term debt securities.

ConocoPhillips Strengthens Shareholder Returns

Shareholder distributions totaled $3 billion, comprising $2 billion of share repurchases and $1 billion of ordinary dividends.

COP Reaffirms Full-Year Guidance

ConocoPhillips expects third-quarter 2026 production of 2.29-2.32 million barrels of oil equivalent per day. All full-year guidance items were reaffirmed.

The company declared a third-quarter ordinary dividend of 84 cents per share. Management reiterated that COP remains on track to return 45% of cash from operations to shareholders in 2026.

COP’s Zacks Rank & Key Picks

ConocoPhillips currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the energy sector are PBF Energy Inc. PBF, HF Sinclair Corporation DINO and Cactus, Inc. WHD. PBF sports a Zacks Rank #1 (Strong Buy) at present, while DINO and WHD carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks Rank #1 stocks here.

PBF reported second-quarter 2026 adjusted earnings of $6.22 per share, surpassing the Zacks Consensus Estimate of $4.05.

As of June 30, 2026, PBF had total debt of $1.75 billion, and cash and cash equivalents of $894.1 million.

HF Sinclair reported second-quarter 2026 adjusted earnings of $5.31 per share, topping the Zacks Consensus Estimate of $4.39.

As of June 30, 2026, DINO had total debt of $2.77 billion, and cash and cash equivalents of $2.26 billion.

Cactus reported second-quarter 2026 adjusted earnings of 93 cents per share, surpassing the Zacks Consensus Estimate of 71 cents.

As of June 30, 2026, WHD had cash and cash equivalents of $365 million.

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