ConocoPhillips boosts dividend, tightens costs, and lifts output guidance

ConocoPhillips delivered stronger-than-expected third-quarter results and signaled confidence heading into 2026, raising its ordinary dividend by 8% and tightening cost guidance while increasing production targets.

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The company reported third-quarter adjusted earnings of $2.0 billion ($1.61 per share) on production of 2,399 MBOED, up 4% year over year on an underlying basis. Total earnings came in at $1.7 billion ($1.38 per share). Cash from operations, excluding working capital, reached $5.4 billion, funding $2.9 billion in capital spending, $1.3 billion in share repurchases, and $1.0 billion in dividends.

Despite a 14% decline in realized prices to $46.44 per BOE, higher output and the addition of Marathon Oil assets helped offset the impact of weaker commodity markets.

ConocoPhillips lifted its full-year production guidance to 2.375 MMBOED and reduced its 2025 adjusted operating cost outlook to $10.6 billion. Fourth-quarter production is expected between 2.30 and 2.34 MMBOED.

The dividend hike to $0.84 per share underscores a higher baseline for shareholder returns, reflecting management’s confidence in long-term cash generation.

For 2026, the company outlined plans for about $12 billion in capital expenditures, $10.2 billion in adjusted operating costs, and 0–2% underlying production growth. That spending level marks a slight pullback from 2025’s midpoint, suggesting disciplined capital management amid a softer pricing environment.

Lower 48 operations remained the growth engine, averaging 1,528 MBOED, including:

• 686 MBOED from the Delaware Basin

• 403 MBOED from Eagle Ford

• 200 MBOED from the Bakken

• 196 MBOED from the Midland Basin

The mix highlights the company’s continued focus on high-return shale plays while maintaining stable international and Alaska output.

In Alaska, ConocoPhillips continues to anchor the state’s oil economy with ongoing production from Prudhoe Bay and the Western North Slope, and development progress on the Willow Project, which remains central to the company’s long-term North Slope strategy. Strong cash flow from Lower 48 operations and disciplined capital plans bolster the company’s ability to advance major Alaska projects even amid market volatility.