Key Highlights
- Adjusted Q1 earnings per share reached $1.89, surpassing analyst expectations of $1.68
- Company reported net income of $2.18 billion compared to $2.85 billion in the previous year’s quarter
- Production forecasts for Q2 and full-year now exclude Qatar operations amid Middle East conflict
- Annual production forecast revised downward to 2.3M–2.33M barrels/day from previous 2.33M–2.36M range
- Shares dropped approximately 1.8% during premarket hours Thursday following the announcement
ConocoPhillips delivered stronger-than-expected first quarter results for 2026, yet shares retreated during premarket activity following the energy giant’s decision to lower its annual production targets.
The company’s adjusted profit reached $1.89 per share, exceeding the FactSet consensus estimate of $1.68. Reported earnings stood at $1.78 per share for the quarter.
Quarterly net income totaled $2.18 billion, representing a decline from the $2.85 billion recorded during the comparable period in 2025. The year-over-year decrease stems from weaker natural gas pricing in the Permian Basin alongside diminished production volumes.
The company’s average realized price per barrel of oil equivalent reached $50.36, marking a 5.6% decline versus Q1 2025. Daily production averaged 2.31 million barrels of oil-equivalent, representing an 80,000 barrel per day reduction compared to the prior year.
According to ConocoPhillips, improved cost management helped mitigate some of the earnings impact.
Middle East Operations Removed from Projections
The most significant development for shareholders centered on what ConocoPhillips removed from its forward-looking statements.
ConocoPhillips removed Qatar from its second quarter and full-year production guidance, pointing to unpredictability related to the continuing Middle East conflict.
Chief Executive Ryan Lance spoke to the matter. “Our thoughts are with our team, partners and everyone impacted by the ongoing conflict in the Middle East,” he stated.
The company’s Q2 production guidance calls for output between 2.19 million and 2.22 million barrels of oil-equivalent daily. This represents a decrease from the 2.31 million barrels produced in Q1.
Full-year production expectations were adjusted to a range of 2.3 million–2.33 million barrels per day, reduced from the earlier projection of 2.33 million–2.36 million barrels daily.
Market Response
Shares of COP declined approximately 1.8% during Thursday’s premarket session, trading near $126.10. This followed a 3.2% advance during the prior trading day.
Oil prices experienced downward movement as well, retreating following an initial surge to a four-year peak.
Through Wednesday’s closing bell, COP had climbed roughly 37% year-to-date before Thursday’s premarket decline.
