ConocoPhillips Says Middle East Conflict Has Global Economy Feeling The Pain

ConocoPhillips (COP) reported first-quarter fiscal 2026 results that topped analyst expectations, supported by stronger-than-expected earnings and revenue.

Earnings Snapshot

The company posted earnings of $2.2 billion, or $1.78 per share, down from $2.8 billion, or $2.23 per share, in the same quarter last year. Adjusted earnings came in at $1.89 per share, beating the consensus estimate of $1.64. Revenue totaled $16.054 billion, exceeding expectations of $15.548 billion.

Production Details

Total production declined 80 MBOED year over year to 2.3 million barrels of oil equivalent per day. Excluding impacts from acquisitions and dispositions, production fell 1%, or 14 MBOED.

Lower 48 production reached 1,453 MBOED, including 698 MBOED from the Delaware Basin, 200 MBOED from the Midland Basin, 367 MBOED from the Eagle Ford and 183 MBOED from the Bakken.

The company reported an average realized price of $50.36 per barrel of oil equivalent, down 6% from a year earlier.

Shareholder Returns

ConocoPhillips (COP) declared a second-quarter dividend of 84 cents per share, payable June 1 to shareholders of record as of May 11, 2026. The company repurchased $1.0 billion of shares during the quarter.

Projects and Updates

The Willow project in Alaska is about 50% complete, with construction progressing steadily. The company also secured a third-party tolling agreement in Equatorial Guinea, extending its LNG operations into the next decade.

Lance Flags Middle East Turmoil As Key Risk

CEO Ryan Lance opened the earnings call by addressing the ongoing Middle East conflict, emphasizing concern for employees, partners and affected communities.

He noted that supply disruptions and heightened volatility are impacting not just energy markets but the broader global economy.

Lance framed such volatility as inevitable in the industry, but stressed that the situation underscores the critical importance of U.S. and global energy security.

He expressed hope for a swift diplomatic resolution that restores stability, protects U.S. interests and reopens global commerce.

Outlook

ConocoPhillips (COP) expects second-quarter production to range between 2.185 million and 2.215 million BOE per day and reaffirmed full-year production guidance of 2.295 million to 2.325 million BOE per day. The company plans to add one rig in the Permian Basin in the second half of 2026.

Management said impacts from the Middle East conflict were limited to QatarEnergy's N3 project, with the broader portfolio unaffected. The company remains on track to achieve a $1 billion run-rate cost savings target by the end of 2026.

ConocoPhillips (COP) expects global oil demand to be broadly flat year over year, with potential downside risk tied to ongoing Middle East tensions. The company also anticipates higher share repurchases in the second quarter.

For 2026, capital expenditures are projected at $12 billion to $12.5 billion, reflecting uncertainty tied to the macro environment and the timing of North Field East and North Field South projects in Qatar.

COP Price Action: ConocoPhillips (COP) shares were down 1.57% at $126.24 at the time of publication on Thursday, according to Benzinga Pro data.

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