ConocoPhillips Raises Dividend 11% as Q3 Earnings Reach $4 Billion

ConocoPhillips reported its third-quarter 2026 results on November 5, 2026 (COP ), posting earnings of $4.0 billion, or $3.34 per share, up from $1.7 billion, or $1.38 per share, in the same quarter of 2025. The company also raised its quarterly ordinary dividend by 11% to $0.93 per share.

Adjusted earnings, which exclude special items, reached $3.9 billion, or $3.27 per share, compared with $2.0 billion, or $1.61 per share, a year earlier. Special items primarily reflected the reversal of a tax reserve; the reconciliation listed a $126 million after-tax tax adjustment, equivalent to $0.11 per share.

ConocoPhillips attributed the earnings increase primarily to higher prices, partially offset by lower volumes. Its total average realized price rose 32% to $61.40 per barrel of oil equivalent from $46.44. Production moved in the opposite direction: reported output averaged 2.302 million barrels of oil equivalent per day, down 97,000 from the third quarter of 2025. After adjusting for closed acquisitions and dispositions, production declined 40,000 barrels per day, or 2%. Organic growth in the Lower 48 was more than offset by the impact of the Middle East conflict on Qatar and higher Surmont royalties.

Cash Flow Funds Investment and Shareholder Distributions

Cash from operations, which excludes timing effects from operating working-capital changes, was $7.17 billion. Capital expenditures and investments totaled $3.13 billion, leaving $4.04 billion in free cash flow, which ConocoPhillips defines as cash from operations less capital expenditures and investments. The company also received $1.6 billion of proceeds from sales of noncore assets.

Shareholder distributions totaled $3.4 billion, comprising $2.4 billion of share repurchases and $1.0 billion of ordinary dividends. ConocoPhillips ended the quarter with $10.4 billion of cash and short-term investments, plus $1.1 billion of long-term investments.

The new dividend rate takes effect with the fourth-quarter dividend, payable December 1, 2026, to stockholders of record at the close of business on November 16, 2026. Management said ConocoPhillips remained on track to return 45% of cash from operations to shareholders in 2026. For that target, return of capital comprises ordinary dividends and share repurchases.

Operating Milestones and the 2029 Cash-Flow Target

Lower 48 production averaged 1.517 million barrels of oil equivalent per day. ConocoPhillips reported record Permian completion efficiency, with 15% more pumping hours than the prior-year average.

The operating update put Willow’s module fabrication scope at more than 75% complete and kept the project on track for first oil in early 2029. Surmont Pad 104W-B in Canada achieved first production ahead of schedule and under budget, while the commercial LNG offtake portfolio expanded to 13 million tonnes per annum.

ConocoPhillips expects fourth-quarter 2026 production of 2.32 million to 2.36 million barrels of oil equivalent per day. Full-year capital expenditure and adjusted operating cost guidance remains unchanged.

President and CEO Andy O’Brien said the company remained on track for a targeted $7 billion free-cash-flow inflection by 2029 and expected cash from operations and free cash flow to continue growing well into the next decade. “Importantly, 2029 is not the endpoint.”

The quarter establishes substantial current cash generation, but the longer plan still rests on future execution. The production guidance, Willow schedule and other operating milestones are the checkpoints accompanying the 2029 target; whether they yield the inflection and subsequent growth management expects remains the central open question.