ConocoPhillips Q3 2026: Earnings Beat, 11% Dividend Raise, $4B Free Cash Flow

ConocoPhillips posted adjusted earnings of $3.27 per share in the third quarter of 2026, topping the Wall Street consensus of $3.04 by 7.47%. Revenue came in at $20.06 billion, beating estimates of $18.92 billion by 6.03% and climbing 29.2% from a year earlier. GAAP net income more than doubled to $4.00 billion from $1.73 billion in the same period last year.

The main engine behind the quarter was a sharp rise in commodity prices. The company's average realized price reached $61.40 per barrel of oil equivalent, up 32% from $46.44 a year ago, as Brent dated averaged $97.00 per barrel compared with $69.07 in the prior-year period. Lower 48 adjusted earnings nearly doubled year over year, and capital expenditures fell sharply, which together drove free cash flow to $4.04 billion.

That free cash flow supported a generous return to shareholders. ConocoPhillips returned $3.40 billion in the quarter through buybacks and dividends and lifted its quarterly ordinary dividend 11% to $0.93 per share, payable December 1 to shareholders of record on November 16. Management reiterated its target of returning 45% of cash flow from operations to shareholders in 2026.

Looking further out, CEO Andy O'Brien reaffirmed the company's long-range ambitions: 'We also remain on track to deliver a peer-leading $7 billion free cash flow inflection by 2029. Importantly, 2029 is not the endpoint.' Fourth-quarter 2026 production is guided to 2.32 to 2.36 million barrels of oil equivalent per day, and full-year capital expenditure guidance was left unchanged.

The Willow project in Alaska remains a key piece of the 2029 picture, with module fabrication scope more than 75% complete and first oil still on track for early 2029. The Surmont Pad 104W-B in Canada also reached first production ahead of schedule and under budget, adding a near-term operational highlight to an already strong quarter.