ConocoPhillips reported disappointing fourth-quarter results on February 5, 2026, missing both earnings and revenue estimates as lower oil prices overshadowed production gains from the Marathon Oil acquisition. The Houston-based energy producer posted adjusted EPS of $1.02, falling short of the $1.12 consensus estimate by 9%. Revenue of $14.19 billion also missed expectations of $14.34 billion.
Commodity Prices Drive Earnings Decline
Net income tumbled to $1.44 billion from $2.30 billion in the year-ago quarter, a 37.3% decline driven primarily by weaker commodity prices. The company’s realized price per barrel of oil equivalent fell 19% year-over-year to $42.46, reflecting broader market pressures. WTI crude averaged $61.60 per barrel as of early February, down 13.7% year-over-year.
Production reached 2,320 MBOED, up 137 MBOED year-over-year, thanks to the Marathon acquisition, though underlying production declined 2.6% when adjusted for the merger impact.
Marathon Synergies Exceed Targets
CEO Ryan Lance highlighted operational achievements despite the earnings miss, stating: “We outperformed our initial production, capital and cost guidance; successfully integrated Marathon Oil, doubling our synergy capture.” The company achieved over $1 billion in run-rate synergies from the Marathon deal, double the initial target.
2026 Outlook and Shareholder Returns
ConocoPhillips issued 2026 guidance targeting production of 2.33-2.36 MMBOED with capital expenditures of approximately $12 billion. The company plans to reduce costs by $1 billion and expects $7 billion in incremental free cash flow by 2029.
The board declared a $0.84 per share quarterly dividend payable March 2, 2026. For full-year 2025, ConocoPhillips returned $9.0 billion to shareholders, including $5.0 billion in buybacks and $4.0 billion in dividends, representing 45% of cash from operations.
Shares rose 14.93% year-to-date through February 4, closing at $107.59.
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