ConocoPhillips (COP.US) Q3 earnings doubled, beating expectations; to return US$3.4 billion to investors through buybacks and dividends.

On November 5, before the U.S. market opened, ConocoPhillips (COP.US) reported its third-quarter 2026 results. The report showed quarterly net profit of US$4.001 billion, or diluted earnings per share of US$3.34, up 142% year over year; adjusted net profit was US$3.918 billion, or adjusted earnings per share of US$3.27, up 103% year over year and above the market expectation of about US$2.97. The company said the earnings growth mainly came from higher realized prices, partly offset by lower sales volumes. The average realized price for the quarter was US$61.40 per barrel of oil equivalent, up 32% year over year. Total production was 2.302 million barrels of oil equivalent per day, down 97,000 barrels year over year; excluding the impact of acquisitions and divestitures, pro forma production fell by about 40,000 barrels (-2%) year over year, mainly because the Middle East conflict affected operations in Qatar and higher royalties on the Canadian Surmont project offset organic growth in the Lower 48. Lower 48 production was 1.517 million barrels of oil equivalent per day, including 757,000 barrels in the Delaware block of the Permian Basin, 197,000 barrels in the Midland block, 369,000 barrels in Eagle Ford, and 191,000 barrels in Bakken. In terms of cash flow, cash flow from operating activities for the quarter was US$7.172 billion, capital expenditure was US$3.133 billion, and free cash flow was US$4.039 billion, plus US$1.6 billion in divestiture proceeds. The company repurchased US$2.4 billion of stock and paid US$1 billion in ordinary dividends during the quarter, for total shareholder returns of US$3.4 billion, continuing to advance its goal of returning 45% of operating cash flow in 2026. The board also approved an 11% increase in the quarterly ordinary dividend to US$0.93 per share, payable on December 1 to shareholders of record on November 16. In terms of guidance, the company expects fourth-quarter production of 2.32 million to 2.36 million barrels of oil equivalent per day, and its full-year capital expenditure and adjusted operating cost guidance remain unchanged. President and CEO Andy O'Brien said the company continues to improve efficiency in its Lower 48 assets, expand its commercial LNG offtake portfolio, and advance the critical path of the Willow project, with its goal of achieving US$7 billion in incremental free cash flow by 2029 on track, and that "2029 is not the finish line." On November 4, affected by the U.S. midterm election results and market bets that the Iran war would end sooner, Brent crude plunged 8.7% in a single day and briefly fell below US$95 per barrel, energy stocks fell across the board, and ConocoPhillips closed down 5.17% at US$136.94 that day. Before the market opened on November 5, the stock edged up about 0.6%.