ConocoPhillips (COP.US) Q3 earnings doubled to exceed expectations and will return $3.4 billion to investors through repurchase bonuses

The Zhitong Finance App learned that before the US stock market on November 5, ConocoPhillips (COP.US) announced the results for the third quarter of 2026. According to financial reports, net profit for the quarter was US$4.01 billion, with diluted earnings of US$3.34 per share, up 142% year on year; adjusted net profit of US$3,918 billion, and adjusted earnings per share of US$3.27, up 103% year over year, higher than market expectations of about US$2.97. The company said that the increase in performance came mainly from achieving price increases, partly offset by lower sales volume.

The average realized price for the quarter was $61.40 per barrel of oil equivalent, an increase of 32% year over year. Total production volume was 2.32 million barrels of oil equivalent per day, down 97,000 barrels year on year; after excluding the impact of mergers and acquisitions, pro forma production fell by about 40,000 barrels (-2%) year on year, mainly due to the impact of the Middle East conflict on the Qatar business and the increase in equity in the Surmont project in Canada, offsetting the organic growth of the Lower 48. The Lower 48 produces 1,517,000 barrels of oil equivalent per day, including 757,000 barrels in the Delaware block in the Permian Basin, 197,000 barrels in the Midland block, 369,000 barrels in Eagle Ford, and 1.91,000 barrels in Bakken.

In terms of cash flow, cash flow from operating activities for the quarter was US$7.172 billion, capital expenses of US$3.133 billion, free cash flow of US$4.039 billion, and income from asset divestment of US$1.6 billion. The company repurchased $2.4 billion of shares and paid $1 billion of ordinary dividends during the quarter, with a total shareholder return of $3.4 billion, continuing to advance the goal of returning 45% of operating cash flow by 2026. The board of directors also approved an 11% increase in the quarterly ordinary dividend to $0.93 per share. Shareholders registered on November 16 will receive dividends on December 1.

In terms of guidance, the company expects production of 2.32 million to 2.36 million barrels of oil equivalent per day in the fourth quarter, and the annual capital expenditure and adjusted operating cost guidelines will remain unchanged. President and CEO Andy O'Brien said that the company continues to improve efficiency in Lower 48 assets, expand its commercial LNG offtake portfolio, and advance the key path of the Willow project. The goal of achieving a $7 billion free cash flow increase in 2029 is progressing according to plan, and “2029 is not the end.”

On November 4, influenced by the results of the US midterm elections and market bets on a faster end to the Iran war, Brent crude oil plummeted 8.7% in a single day, once falling below 95 US dollars per barrel. Energy stocks fell sharply across the board. ConocoPhillips closed down 5.17% to 136.94 US dollars on the same day. The stock rebounded slightly by about 0.6% before the November 5 market.