ConocoPhillips (NYSE:COP) shares are trading higher on Thursday after the company reported better-than-expected third-quarter results.
Adjusted EPS came in at $3.27, beating the analyst estimate of $2.97. Revenue reached $20.06 billion, surpassing the $18.18 billion consensus estimate.
The company generated $7.2 billion in operating cash flow and distributed $3.4 billion to shareholders, including $2.4 billion in share repurchases. Capital expenditures and investments totaled $3.1 billion.
ConocoPhillips raised its quarterly dividend by 11% to $0.93 per share, payable on Dec. 1 to shareholders of record on Nov. 16.
Production Update
ConocoPhillips reported third-quarter production of 2,302 thousand barrels of oil equivalent per day (MBOED), including 1,517 MBOED from the Lower 48.
Production declined 97 MBOED year over year. Excluding acquisitions and dispositions, output fell 40 MBOED, or 2%, as Lower 48 growth was offset by disruptions in Qatar and higher Surmont royalties.
Lower 48 production comprised 757 MBOED from the Delaware Basin, 197 MBOED from the Midland Basin, 369 MBOED from the Eagle Ford and 191 MBOED from the Bakken.
The average realized price increased 32% to $61.40 per barrel of oil equivalent (BOE) from $46.44 a year earlier, supporting earnings growth despite lower production volumes.
Project and Operational Updates
CEO Andy O’Brien highlighted operational efficiencies across Lower 48 assets, LNG portfolio expansion and progress on the Willow project.
Willow module fabrication exceeded 75% completion, keeping the project on track for first oil in early 2029.
Permian pumping hours increased 15% from the prior-year average, while Canada’s Surmont Pad 104W-B began production ahead of schedule and under budget.
ConocoPhillips also expanded its LNG offtake portfolio to 13 million tonnes per annum (MTPA). The company ended the quarter with $10.4 billion in cash and short-term investments and $1.1 billion in long-term investments.
Outlook
ConocoPhillips reaffirmed its target of achieving a $7 billion free cash flow inflection by 2029, with further growth expected beyond that year.
For the fourth quarter of 2026, the company expects production of 2.32 million-2.36 million BOE per day.
Full-year capital expenditure and adjusted operating cost guidance remain unchanged.
COP Stock Price Activity: ConocoPhillips shares are trading higher by 2.81% at $140.79 at the time of publication on Thursday, according to Benzinga Pro data.
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