ConocoPhillips doubled its quarterly share repurchases to $2 billion during the second quarter of 2026, increasing total shareholder distributions to $3 billion while completing its $5 billion asset-disposition target ahead of schedule.
The $3 billion returned to shareholders consisted of $2 billion of share repurchases and $1 billion of ordinary dividends. ConocoPhillips said it remains on track to return approximately 45% of cash from operations to shareholders during 2026.
The higher capital returns were supported by strong cash generation. ConocoPhillips generated $7.4 billion of cash provided by operating activities during Q2 and $7.2 billion of cash from operations excluding working-capital changes. The company funded $3 billion of capital expenditures and investments during the same period.
ConocoPhillips also accelerated the reshaping of its portfolio. Agreements to sell $1.7 billion of noncore Lower 48 assets closed in July, allowing the company to achieve its $5 billion asset-disposition target ahead of its planned timetable.
Management continues to target a significant improvement in structural free cash flow later in the decade. The company said it remains on track for a $7 billion free cash flow inflection by 2029 as projects advance, portfolio optimization continues and operating efficiencies are realized.
ConocoPhillips generated Q2 earnings of $3.9 billion, or $3.23 per share, compared with $2 billion, or $1.56 per share, a year earlier. Adjusted earnings reached approximately $4 billion, or $3.24 per share, compared with $1.8 billion, or $1.42 per share, in Q2 2025.
Stronger commodity prices helped drive the earnings increase. ConocoPhillips’ average realized price increased 36% year-over-year to $62.33 per barrel of oil equivalent from $45.77.
Total company production reached 2.248 million barrels of oil equivalent per day, with Lower 48 production totaling 1.479 million BOE per day. The Delaware Basin contributed 720,000 BOE per day, followed by 363,000 from Eagle Ford, 202,000 from the Midland Basin and 189,000 from the Bakken.
Production nevertheless declined 4% on a pro forma underlying basis from the prior year, as Lower 48 organic growth was more than offset by the impact of the Middle East conflict on Qatar and higher Surmont royalties.
ConocoPhillips is also expanding internationally. The company agreed to acquire a 42% interest in a joint venture in the Kirkuk area of northern Iraq and executed an agreement to re-enter Syria. It also added 2 million tonnes per annum of LNG offtake, bringing its total LNG offtake portfolio to 12 MTPA.
The company ended Q2 with $8.1 billion of cash and short-term investments and another $1.2 billion of long-term investments.
KEY QUOTES:
“ConocoPhillips delivered strong second-quarter results with exceptional operational performance, record production from our peer-leading Permian position and disciplined execution across the business, all while continuing to progress our strategic priorities.”
“We doubled our quarterly share repurchases, achieved our $5 billion asset disposition target ahead of schedule, secured low cost of supply opportunities in the Middle East, and increased our LNG offtake to 12 MTPA. We are executing well, delivering on our strategy, and remain on track to achieve our $7 billion free cash flow inflection by 2029.”
Ryan Lance, Chairman and CEO of ConocoPhillips
