Key Highlights
- ConocoPhillips delivered Q1 adjusted earnings of $1.89 per share, surpassing Wall Street’s $1.68 projection
- Company reported net income of $2.18 billion, down from $2.85 billion in the prior-year quarter
- Production guidance now excludes Qatar operations for Q2 and full year amid Middle East conflict concerns
- Annual production forecast lowered to 2.3M–2.33M barrels per day from previous 2.33M–2.36M estimate
- Shares dropped approximately 1.8% during premarket hours Thursday following the announcement
ConocoPhillips delivered better-than-expected first-quarter results for 2026, yet investors sent shares lower in premarket activity following the company’s decision to reduce its production forecast.
The energy producer reported adjusted profit of $1.89 per share, exceeding the FactSet consensus estimate of $1.68. Reported earnings reached $1.78 per share.
Quarterly net income totaled $2.18 billion, marking a decline from the $2.85 billion recorded during the corresponding period last year. The year-over-year decrease stems from weaker natural gas pricing in the Permian Basin and decreased production volumes.
The company’s average realized price stood at $50.36 per barrel of oil equivalent, representing a 5.6% decline compared to Q1 2025. Daily production averaged 2.31 million barrels of oil-equivalent, down 80,000 barrels per day year-over-year.
According to ConocoPhillips, improved cost management helped mitigate some of the earnings decline.
Middle East Uncertainty Prompts Qatar Exclusion
The more significant development for market participants involved what the energy company omitted from its forward-looking projections.
ConocoPhillips removed Qatar from its second-quarter and full-year production guidance, pointing to unpredictability surrounding the continuing Middle East conflict.
Chief Executive Ryan Lance commented on the matter directly. “Our thoughts are with our team, partners and everyone impacted by the ongoing conflict in the Middle East,” he stated.
For the second quarter, management projected production 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.
The company lowered its full-year production guidance to 2.3 million–2.33 million barrels per day, down from its earlier forecast of 2.33 million–2.36 million barrels daily.
Market Response
Shares of COP declined approximately 1.8% in Thursday’s premarket session, trading near $126.10. This followed a 3.2% increase during the prior trading day.
Oil prices also experienced downward pressure, retreating after initially surging to a four-year peak.
Through Wednesday’s close, COP had gained roughly 37% year-to-date before Thursday’s premarket decline.
