CONOCOPHILLIPS Earnings Summary — Q1 2026

• Revenue for Q1 2026 declined 4.58% year-over-year to $15.76 billion, reflecting softer commodity price environments compared to previous cycles.
• Net income dropped significantly by 23.38% year-over-year, though it showed a sharp sequential recovery of 51% from the Q4 2025 lows.
• Total operating expenses increased sequentially to $3.93 billion, partially driven by a rise in other operating expenses and D&A.
• The company continues its share count reduction strategy, with shares outstanding falling to 1,218 million markers compared to 1,273 million year-over-year.
• Provision for income taxes remained a significant headwind, taking nearly 35% of pretax income in the current quarter.
• Despite top-line pressure, the company maintains a structurally improved baseline compared to pre-2022 levels, benefiting from high-grading its Permian assets.

Management maintains a disciplined focus on a low-cost-of-supply portfolio and prioritizes a variable return-of-capital model to favor shareholder distributions over aggressive production growth.

Stable

While earnings are down year-over-year, the strong sequential rebound from Q4 2025 suggests the company is effectively managing the current price floor.

The outlook remains tied to commodity price volatility, with the company's Willow project and Permian Basin assets providing a long-term production floor. Strategic focus remains on maintaining break-even efficiency below $60/bbl.