ConocoPhillips (COP) reported third-quarter 2026 earnings of $4.0 billion, or $3.34 a share, up from $1.7 billion, or $1.38 a share, a year earlier. Adjusted earnings, which exclude special items, were $3.9 billion, or $3.27 a share. Special items for the quarter primarily reflected the reversal of a tax reserve.

The global exploration and production company said earnings and adjusted earnings increased from the third quarter of 2025 primarily due to higher prices, partially offset by lower volumes. Total average realized price was $61.40 per BOE, 32% higher than the $46.44 per BOE realized a year earlier.

Production was 2,302 thousand barrels of oil equivalent per day (MBOED), down 97 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions, production decreased 40 MBOED, or 2%. The company said organic growth from the Lower 48 was more than offset by the impact of the Middle East conflict on Qatar and higher Surmont royalties.

Lower 48 output was 1,517 MBOED, including 757 MBOED from the Delaware Basin, 197 MBOED from the Midland Basin, 369 MBOED from the Eagle Ford and 191 MBOED from the Bakken.

Cash provided by operating activities and cash from operations (CFO) were $7.2 billion. The company also received $1.6 billion of disposition proceeds from the sale of noncore assets. It funded $3.1 billion of capital expenditures and investments, repurchased $2.4 billion of shares and paid $1.0 billion in ordinary dividends. Free cash flow was $4.0 billion.

Shareholder distributions totaled $3.4 billion. ConocoPhillips said it is on track for a 45% return of CFO in 2026. It raised the quarterly ordinary dividend 11% to $0.93 a share, effective with the fourth-quarter dividend payable Dec. 1, 2026, to stockholders of record Nov. 16, 2026. The company said the increase is consistent with a top-quartile S&P 500 growth objective.

Cash and short-term investments ended the quarter at $10.4 billion, with long-term investments of $1.1 billion.

President and chief executive officer Andy O’Brien said the company is continuing to execute its differential strategy, capturing efficiencies across Lower 48 assets, growing its commercial LNG offtake portfolio and advancing Willow critical path items. He said the company remains on track to deliver a $7 billion free cash flow inflection by 2029.

Willow module fabrication scope was more than 75% complete, with first oil on track for early 2029. The company said it realized record Permian completion efficiency with 15% more pumping hours than the prior-year average and achieved first production ahead of schedule and under budget at Surmont Pad 104W-B in Canada. Commercial LNG offtake expanded to 13 million tonnes per annum.

Fourth-quarter 2026 production is expected to be 2.32 to 2.36 million barrels of oil equivalent per day. Full-year capital expenditures and adjusted operating cost guidance remain unchanged.