Conocophillips 10-Q for FY2026 Q1

Conocophillips (COP)

10-Q 2026-04-30 For: 2026-03-31

Added on April 30, 2026

About this 10-Q

Conocophillips filed this 10-Q on April 30, 2026, covering the quarter ended March 31, 2026 (FY2026 Q1).

Headline figures

Quarter ended March 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $15.76B; down 4.6% from $16.52B a year earlier
Net income: $2.18B; down 23.4% from net income of $2.85B a year earlier
Diluted EPS: $1.78; down 20.2% from $2.23 a year earlier

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			Delaware			01-0562944
			(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)


Title of each class	Trading symbols	Name of each exchange on which registered
Common Stock, $.01 Par Value	COP	New York Stock Exchange
7% Debentures due 2029	CUSIP—718507BK1	New York Stock Exchange


			Page
Commonly Used Abbreviations			1

Part I—Financial Information

Item 1. Financial Statements
Consolidated Income Statement			2
Consolidated Statement of Comprehensive Income			3
Consolidated Balance Sheet			4
Consolidated Statement of Cash Flows			5
Notes to Consolidated Financial Statements			6
Note 1—Basis of Presentation			6
Note 2—Inventories			6

Note 3—Investments and Long-Term Receivables			6
Note 4—Debt			6


Note 5—Guarantees			7
Note 6—Contingencies, Commitments and Accrued Environmental Costs			7
Note 7—Derivative and Financial Instruments			10
Note 8—Fair Value Measurement			13
Note 9—Changes in Equity			16

Note 10—Accumulated Other Comprehensive Income (Loss)			16
Note 11—Cash Flow Information			17
Note 12—Related Party Transactions			17
Note 13—Employee Benefit Plans			18
Note 14—Sales and Other Operating Revenues			19
Note 15—Earnings Per Share			20
Note 16—Segment Disclosures and Related Information			20
Note 17—Income Taxes			24

Note 18—New Accounting Standards			24
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			25
Item 3. Quantitative and Qualitative Disclosures About Market Risk			44
Item 4. Controls and Procedures			44

Part II—Other Information

Item 1. Legal Proceedings			45
Item 1A. Risk Factors			45
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			45
Item 5. Other Information			45
Item 6. Exhibits			46
Signature			47


Currencies		Accounting
$ or USD	U.S. dollar	ARO	asset retirement obligation
CAD	Canadian dollar	ASC	accounting standards codification
EUR	Euro	ASU	accounting standards update
GBP NOK	British pound Norwegian kroner	DD&A	depreciation, depletion and amortization
		EPS	earnings per share
Units of Measurement		FASB	Financial Accounting Standards Board
BBL	barrel
BCF	billion cubic feet	FIFO	first-in, first-out
BOE	barrel of oil equivalent	G&A	general and administrative
MBD	thousand barrels per day	GAAP	generally accepted accounting principles
MCF	thousand cubic feet
MM	million	LIFO	last-in, first-out
MMBOE	million barrels of oil equivalent	NPNS	normal purchase normal sale
MBOED	thousand barrels of oil equivalent per	PP&E	properties, plants and equipment
	day	VIE	variable interest entity
MMBOED	million barrels of oil equivalent per day
MMBTU	million British thermal units
MMCFD	million cubic feet per day	Miscellaneous
MTPA	million tonnes per annum	EPA	Environmental Protection Agency
		ESG	environmental, social and governance
Industry		EU	European Union
BLM	Bureau of Land Management	FERC	Federal Energy Regulatory Commission
CBM	coalbed methane
CCS	carbon capture and storage	GHG	greenhouse gas
E&P	exploration and production	HSE	health, safety and environment
FEED	front-end engineering and design	ICC	International Chamber of Commerce
FID	final investment decision	ICSID	World Bank’s International
FPS	floating production system		Centre for Settlement of
FPSO	floating production, storage and		Investment Disputes
	offloading	IRS	Internal Revenue Service
G&G	geological and geophysical	OTC	over-the-counter
JOA	joint operating agreement	NYSE	New York Stock Exchange
LNG	liquefied natural gas	SEC	U.S. Securities and Exchange
NGLs	natural gas liquids		Commission
OPEC	Organization of Petroleum	TSR	total shareholder return
	Exporting Countries	U.K.	United Kingdom
PSC	production sharing contract	U.S.	United States of America
PUDs	proved undeveloped reserves
SAGD	steam-assisted gravity drainage
WCS	Western Canadian Select
WTI	West Texas Intermediate


	Millions of Dollars
	Three Months Ended March 31
	2026		2025
Revenues and other income
Sales and other operating revenues	$	15,761	16,517
Equity in earnings of affiliates	247		392
Gain (loss) on dispositions	5		79
Other income	41		113
Total revenues and other income	16,054		17,101
Costs and expenses
Purchased commodities	6,283		6,188
Production and operating expenses	2,276		2,506
Selling, general and administrative expenses	193		191
Exploration expenses	109		117
Depreciation, depletion and amortization	2,906		2,746
Impairments	19		1
Taxes other than income taxes	607		551
Accretion on discounted liabilities	97		94
Interest and debt expense	198		205
Foreign currency transaction (gain) loss	—		30
Other expenses	3		6
Total costs and expenses	12,691		12,635
Income (loss) before income taxes	3,363		4,466
Income tax provision (benefit)	1,180		1,617


Net income (loss)	$	2,183	2,849

Net income (loss) per share of common stock (dollars)
Basic	$	1.78	2.23
Diluted	1.78		2.23
Weighted-average common shares outstanding (in thousands)
Basic	1,224,036		1,273,350
Diluted	1,224,960		1,274,879


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Consolidated Statement of Comprehensive Income			ConocoPhillips


	Millions of Dollars
	March 31 2026		December 31 2025
Assets
Cash and cash equivalents	$	5,877	6,497
Short-term investments	486		484
Accounts and notes receivable, net	7,050		5,813



Inventories	1,910		1,873
Prepaid expenses and other current assets	906		865
Total current assets	16,229		15,532
Investments and long-term receivables	10,320		10,185

Net properties, plants and equipment (net of accumulated DD&A of $93,460 and $90,396, respectively)	93,141		93,239
Other assets	3,035		2,983
Total assets	$	122,725	121,939

Liabilities
Accounts payable	$	7,017	6,218


Short-term debt	1,065		1,020
Accrued income and other taxes	2,129		1,835
Employee benefit obligations	505		1,136
Other accruals	1,870		1,763
Total current liabilities	12,586		11,972
Long-term debt	22,262		22,424
Asset retirement obligations and accrued environmental costs	8,366		8,214
Deferred income taxes	12,389		12,237
Employee benefit obligations	944		969
Other liabilities and deferred credits	1,637		1,636
Total liabilities	58,184		57,452

Equity
Common stock (2,500,000,000 shares authorized at $0.01 par value)
Issued (2026—2,255,873,510 shares; 2025—2,253,518,282 shares)
Par value	23		23
Capital in excess of par	77,761		77,728
Treasury stock (at cost: 2026—1,037,579,503 shares; 2025—1,028,350,186 shares)	(77,231)		(76,217)
Accumulated other comprehensive income (loss)	(6,028)		(5,911)
Retained earnings	70,016		68,864
Total equity	64,541		64,487
Total liabilities and equity	$	122,725	121,939


	Open Position Long (Short)
	March 31 2026	December 31 2025
Commodity
Natural gas and power (BCF equivalent)
Fixed price	(20)	(15)
Basis	(15)	(17)


	Millions of Dollars
	Carrying Amount
	Cash and cash equivalents			Short-term investments
	March 31 2026		December 31 2025	March 31 2026	December 31 2025
Cash	$	416	543
Demand deposits	3,605		3,781
Time deposits
1 to 90 days	1,543		975	14	6
91 to 180 days				5	17
Within one year				8	8
U.S. government obligations
1 to 90 days	311		1,198	—	—
	$	5,875	6,497	27	31


	Millions of Dollars
	Amortized Cost Basis			Fair Value
	March 31 2026		December 31 2025	March 31 2026	December 31 2025
Major Security Type
Corporate bonds	$	998	953	999	959
Commercial paper	47		72	47	72
U.S. government obligations	281		268	281	270
U.S. government agency obligations	1		1	1	1
Foreign government obligations	18		18	18	18
Asset-backed securities	283		280	283	281
	$	1,628	1,592	1,629	1,601


	Millions of Dollars
	March 31, 2026					December 31, 2025
	Level 1		Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Assets
Investments in debt securities	$	281	1,348	—	1,629	270	1,331	—	1,601
Commodity derivatives	992		255	73	1,320	306	230	68	604
Total assets	$	1,273	1,603	73	2,949	576	1,561	68	2,205

Liabilities
Commodity derivatives	$	980	181	83	1,244	354	124	60	538
Contingent consideration	—		—	78	78	—	—	—	—
Total liabilities	$	980	181	161	1,322	354	124	60	538


	Millions of Dollars
				Amounts Subject to Right of Setoff
	Gross Amounts Recognized		Amounts Not Subject to Right of Setoff	Gross Amounts	Gross Amounts Offset	Net Amounts Presented	Cash Collateral	Net Amounts
March 31, 2026
Assets	$	1,320	5	1,315	1,017	298	42	256
Liabilities	1,244		1	1,243	1,017	226	45	181

December 31, 2025
Assets	$	604	2	602	361	241	6	235
Liabilities	538		1	537	361	176	53	123


	Millions of Dollars

	Common Stock
	Par Value		Capital in Excess of Par	Treasury Stock	Accum. Other Comprehensive Income (Loss)	Retained Earnings	Total
For the three months ended March 31, 2026
Balances at December 31, 2025	$	23	77,728	(76,217)	(5,911)	68,864	64,487
Net income (loss)						2,183	2,183
Other comprehensive income (loss)					(117)		(117)

Dividend declared ($0.84 per common share)						(1,032)	(1,032)

Repurchase of company common stock				(1,006)			(1,006)
Excise tax on share repurchases				(7)			(7)
Distributed under benefit plans			33				33
Other				(1)		1	—
Balances at March 31, 2026	$	23	77,761	(77,231)	(6,028)	70,016	64,541


Financial Statements			Table of Contents


Financial Statements			Table of Contents


Financial Statements			Table of Contents


Financial Statements			Table of Contents


	Millions of Dollars
	Defined Benefit Plans		Unrealized Holding Gain/(Loss) on Securities	Foreign Currency Translation	Unrealized Gain/(Loss) on Hedging Activities	Accumulated Other Comprehensive Income/(Loss)
December 31, 2025	$	(335)	8	(5,602)	18	(5,911)
Other comprehensive income (loss)	(16)		(6)	(95)	—	(117)
March 31, 2026	$	(351)	2	(5,697)	18	(6,028)


	Millions of Dollars
	Pension Benefits					Other Benefits
	2026			2025		2026	2025
	U.S.		Int'l.	U.S.	Int'l.
Components of net periodic benefit cost
Three months ended March 31
Service cost	$	11	8	15	8	—	—
Interest cost	21		34	23	31	1	2
Expected return on plan assets	(20)		(53)	(19)	(45)
Amortization of prior service cost (credit)	—		—	—	—	(1)	(6)
Recognized net actuarial loss (gain)	2		9	3	11	—	—
Settlements	9		—	—	1	—	—


Net periodic benefit cost	$	23	(2)	22	6	—	(4)


	Millions of Dollars
Balance at December 31, 2025	$	378
Accruals	10
Benefit payments	(248)
Foreign currency translation adjustment	(1)
Balance at March 31, 2026*	$	139


	Millions of Dollars (except per share amounts)
	Three Months Ended March 31
	2026		2025
Basic earnings per share

Net income (loss)	$	2,183	2,849
Less: Dividends and undistributed earnings
allocated to participating securities	6		9
Net income (loss) available to common shareholders	$	2,177	2,840
Weighted-average common shares outstanding (in millions)	1,224		1,273

Net income (loss) per share of common stock	$	1.78	2.23

Diluted earnings per share

Net income (loss) available to common shareholders	$	2,177	2,840
Weighted-average common shares outstanding (in millions)	1,224		1,273
Add: Dilutive impact of options and unvested
non-participating RSU/PSUs (in millions)	1		2
Weighted-average diluted shares outstanding (in millions)	1,225		1,275

Net income (loss) per share of common stock	$	1.78	2.23


Three Months Ended March 31, 2026	Millions of Dollars
	Alaska		L48	Canada	EMENA	AP	Segments Total	Corporate	Consolidated Total
Segment sales and other operating revenues
Sales and other operating revenues#	$	1,523	11,086	1,673	1,627	501	16,410	22	16,432
Intersegment eliminations	—		(6)	(656)	—	—	(662)	(9)	(671)
Consolidated sales and other operating revenues	1,523		11,080	1,017	1,627	501	15,748	13	15,761

Significant segment expenses*
Production and operating expenses	475		1,253	189	257	80	2,254	22	2,276
DD&A	352		2,051	152	239	103	2,897	9	2,906
Income tax provision (benefit)	92		395	27	725	60	1,299	(119)	1,180
Total	919		3,699	368	1,221	243	6,450	(88)	6,362

Other segment items
Equity in earnings of affiliates	—		—	—	(95)	(164)	(259)	12	(247)
Interest income	—		—	—	—	—	—	(109)	(109)
Interest and debt expense	—		—	—	—	—	—	198	198
Other**	310		5,978	564	236	127	7,215	159	7,374
Total	310		5,978	564	141	(37)	6,956	260	7,216

Net income (loss)	$	294	1,403	85	265	295	2,342	(159)	2,183
#Includes revenue from physical contracts meeting the definition of a derivative that are outside the scope of ASC Topic 606 for the L48, Canada and EMENA segments of $1.7 billion, $0.2 billion and $0.2 billion, respectively.
*The significant segment expense categories and amounts in the table above align with segment-level information that is regularly provided to the CODM.
**Other segment items not required to be separately disclosed for each reportable segment include:
Gain (loss) on dispositions: L48 and Corporate
Other income: L48, Canada, EMENA and Corporate
Purchased commodities: Alaska, L48, Canada, EMENA and AP
Selling, general and administrative expenses: L48, Canada, EMENA, AP and Corporate
Exploration expenses, Taxes other than income taxes and Accretion on discounted liabilities: Alaska, L48, Canada, EMENA, AP and Corporate
Impairments: Alaska and L48
Foreign currency transaction (gain) loss: Canada, EMENA, AP and Corporate
Other expenses: EMENA and Corporate


Three Months Ended March 31, 2025	Millions of Dollars
	Alaska		L48	Canada	EMENA	AP	Segment Totals	Corporate	Consolidated Total
Segment sales and other operating revenues
Sales and other operating revenues#	$	1,610	11,548	1,532	1,940	424	17,054	18	17,072
Intersegment eliminations	—		—	(547)	—	—	(547)	(8)	(555)
Consolidated sales and other operating revenues	1,610		11,548	985	1,940	424	16,507	10	16,517

Significant segment expenses*
Production and operating expenses	506		1,491	201	224	65	2,487	19	2,506
DD&A	355		1,904	131	219	119	2,728	18	2,746
Income tax provision (benefit)	139		448	81	922	64	1,654	(37)	1,617
Total	1,000		3,843	413	1,365	248	6,869	—	6,869

Other segment items
Equity in earnings of affiliates	—		(4)	—	(173)	(206)	(383)	(9)	(392)
Interest income	—		—	—	—	(2)	(2)	(74)	(76)
Interest and debt expense	—		—	—	—	—	—	205	205
Other**	283		5,919	316	329	73	6,920	142	7,062
Total	283		5,915	316	156	(135)	6,535	264	6,799

Net income (loss)	$	327	1,790	256	419	311	3,103	(254)	2,849
#Includes revenue from physical contracts meeting the definition of a derivative that are outside the scope of ASC Topic 606 for the L48, Canada and EMENA segments of $1.5 billion, $0.2 billion and $0.3 billion, respectively.
*The significant segment expense categories and amounts in the table above align with segment-level information that is regularly provided to the CODM.
**Other segment items not required to be separately disclosed for each reportable segment include:
Gain (loss) on dispositions: L48 and Corporate
Other income: L48, Canada, EMENA, AP and Corporate
Purchased commodities: Alaska, L48, Canada, EMENA and AP
Selling, general and administrative expenses, Exploration Expenses, Taxes other than income taxes and Accretion on discounted liabilities: Alaska, L48, Canada, EMENA, AP and Corporate
Impairments: EMENA

Foreign currency transaction (gain) loss: Canada, EMENA, AP and Corporate
Other expenses: L48, EMENA and Corporate


Sales and other operating revenues by geographic location	Millions of Dollars
	Three Months Ended March 31
	2026		2025

U.S.	$	12,516	13,112









International	3,245		3,405
Worldwide consolidated	$	15,761	16,517


	Three Months Ended March 31
Industry Prices	2026	2025	Change
Brent ($ per BBL)	80.61	75.66	7	%
WTI ($ per BBL)	71.93	71.42	1	%
Henry Hub ($ per MMBTU)	5.05	3.65	38	%

Average Realized Prices
Crude ($ per BBL)	73.47	71.65	3	%
Bitumen ($ per BBL)	50.37	45.29	11	%

Gas ($ per MCF)	4.09	5.62	(27)	%
Total ($ per BOE)	50.36	53.34	(6)	%


	Dollars Per Unit
Average Sales Prices
Crude oil (per BBL)
Consolidated operations	$	73.52	71.61
Equity affiliates	68.79		75.57
Total crude oil	73.47		71.65

Natural gas liquids (per BBL)
Consolidated operations	20.06		24.86
Equity affiliates	46.27		52.34
Total natural gas liquids	20.42		25.40

Bitumen (per BBL)	50.37		45.29

Natural gas (per MCF)
Consolidated operations	3.34		4.76
Equity affiliates	5.87		7.56
Total natural gas	$	4.09	5.62


	Millions of Dollars
	Three Months Ended March 31, 2026
Revenues and Other Income	$	11,181
Income (loss) before income taxes*	2,050

Net income (loss)	2,183


					Millions of Dollars
Period	Total Number of Shares Purchased*	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs
January 1 - 31, 2026	3,365,382	$	98.06	3,365,382	$	25,380
February 1 - 28, 2026	2,893,733	108.34		2,893,733	25,067
March 1 - 31, 2026	2,970,202	122.21		2,970,202	24,704
	9,229,317			9,229,317






22*			Subsidiary Guarantors of Guaranteed Securities .

31.1*			Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.2*			Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.

32**			Certifications pursuant to 18 U.S.C. Section 1350.

101.INS*			Inline XBRL Instance Document.

101.SCH*			Inline XBRL Schema Document.

101.CAL*			Inline XBRL Calculation Linkbase Document.

101.LAB*			Inline XBRL Labels Linkbase Document.

101.PRE*			Inline XBRL Presentation Linkbase Document.

101.DEF*			Inline XBRL Definition Linkbase Document.

104*			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).


			CONOCOPHILLIPS

			/s/ Kontessa Haynes-Welsh
			Kontessa Haynes-Welsh
			Vice President, Finance and Controller

April 30, 2026


			/s/ Ryan M. Lance
			Ryan M. Lance
			Chairman and
			Chief Executive Officer


			/s/ Andrew M. O’Brien
			Andrew M. O’Brien
			Chief Financial Officer and
			Executive Vice President, Strategy and Commercial