Key Highlights
- Q1 adjusted earnings per share reached $1.89, surpassing Wall Street’s $1.68 forecast
- Quarterly net income declined to $2.18 billion versus $2.85 billion in the prior-year period
- Company removed Qatar operations from second-quarter and annual production forecasts amid regional conflict concerns
- Annual production guidance reduced to 2.3M–2.33M barrels daily from previous 2.33M–2.36M estimate
- Shares dropped approximately 1.8% during premarket sessions Thursday following the announcement
ConocoPhillips delivered stronger-than-expected first-quarter results for 2026, yet shares tumbled during premarket hours as the energy giant lowered its production projections.
The company reported adjusted profit of $1.89 per share, exceeding the analyst consensus estimate of $1.68 from FactSet. Reported earnings stood at $1.78 per share.
Quarterly net income totaled $2.18 billion, marking a significant decline from the $2.85 billion recorded during the corresponding quarter last year. The year-over-year contraction stems from weakened natural gas pricing in the Permian region and diminished output 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 totaled 2.31 million barrels of oil-equivalent, falling short by 80,000 barrels per day versus the previous year’s figures.
According to ConocoPhillips, reduced operational expenses helped cushion the earnings decline.
Middle East Operations Removed From Forecast
The primary concern for market participants centered on what the company omitted from its forward guidance rather than its quarterly performance.
ConocoPhillips removed Qatar-based operations from both its second-quarter and annual production estimates, pointing to unpredictability stemming from the continuing Middle East regional tensions.
Chief Executive Ryan Lance commented on the matter. “Our thoughts are with our team, partners and everyone impacted by the ongoing conflict in the Middle East,” he stated.
For the second quarter, the energy producer projects output between 2.19 million and 2.22 million barrels of oil-equivalent daily. This represents a decline from the 2.31 million barrels produced in Q1.
The company revised its full-year production forecast downward to 2.3 million–2.33 million barrels daily, a reduction from its earlier projection of 2.33 million–2.36 million barrels per day.
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 also faced downward pressure, retreating after an initial surge to four-year highs.
Through Wednesday’s market close, COP stock had climbed roughly 37% year-to-date prior to Thursday’s premarket decline.
