ConocoPhillips closed the sale of noncore Lower 48 assets for $1.7 billion in July, pushing its total asset dispositions past a $5 billion target ahead of schedule. The ConocoPhillips announcement capped a second quarter in which the company reported earnings per share of $3.23, adjusted earnings per share of $3.24, and lifted total shareholder distributions to $3.0 billion.
ConocoPhillips called the quarter's operating performance strong, pointing to record production from its Permian position and what it described as disciplined execution across the business.
Second-quarter earnings and payouts
Second-quarter cash provided by operating activities was $7.4 billion, and cash from operations (CFO) was $7.2 billion. ConocoPhillips doubled its share repurchases during the quarter, lifting total shareholder distributions to $3.0 billion, split between $2.0 billion in buybacks and $1.0 billion in the ordinary dividend. The company said it is on pace to return 45% of cash from operations to shareholders in 2026. It also declared a third-quarter ordinary dividend of $0.84 per share and reaffirmed its full-year guidance.
Total company production was 2,248 thousand barrels of oil equivalent per day (MBOED), with 1,479 MBOED from the Lower 48. Total production fell 143 MBOED from the second quarter of 2025; adjusted for closed acquisitions and dispositions, the decline was 98 MBOED, or 4%. Earnings and adjusted earnings rose from a year earlier, which ConocoPhillips attributed mainly to higher prices. Crude and gas markets moved higher over that stretch: WTI crude was $84.65 a barrel and Henry Hub gas was $3.06 per MMBtu as of June 15, 2026, according to the EIA.
| Deal terms | |
|---|---|
| Lower 48 assets sold | $1.7 billion, closed July 2026 |
| Disposition target | $5 billion, reached ahead of schedule |
| Q2 EPS / adjusted EPS | $3.23 / $3.24 |
| Total shareholder distributions | $3.0 billion ($2.0B buybacks, $1.0B dividend) |
| Q3 ordinary dividend | $0.84 per share |
Portfolio moves in Iraq and Syria
ConocoPhillips signed an agreement to acquire a 42% interest in a joint venture in the Kirkuk area of northern Iraq. The company said the assets are long-lived, conventional fields it can redevelop at a low entry cost and a competitive cost of supply, with closing expected by year-end 2026.
The company also signed a deal to re-enter Syria, where it plans to use existing infrastructure to restore and increase production at onshore fields.
On the LNG side, ConocoPhillips signed 2 million tonnes per annum (MTPA) of new offtake agreements during the quarter, bringing its total committed LNG offtake to 12 MTPA.
Balance sheet, six-month results and outlook
ConocoPhillips ended the quarter with $8.1 billion in cash and short-term investments and $1.2 billion in long-term investments.
For the first six months of 2026, production averaged 2,278 MBOED, down 113 MBOED from the same period a year earlier; adjusted for portfolio changes, the decline was 57 MBOED, or 2%.
ConocoPhillips expects third-quarter 2026 production of 2.29 million to 2.32 million barrels of oil equivalent per day and said all full-year guidance items remain unchanged.
