CONOCOPHILLIPS
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 5, 2026
COP$136.27+0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001163165-26-000032
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations“Capital Expenditures and Investments”Current report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001163165-26-000045
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations“Capital Expenditures and Investments”The baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 202 previous paragraphs and 205 current paragraphs.
110 unchanged; 66 reworded; 28 added; 24 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 57 previous and 57 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (28)
Current report
In October 2026, we notified employees, partners and regulators that we are evaluating a potential sale of our Norway business and Teesside asset after receiving an unsolicited offer. This evaluation is consistent with our disciplined strategy to optimize and high-grade our portfolio. If we do not receive an offer that meets our expectations for value, we will retain the assets. Production from these assets was approximately five percent of total company production volumes in 2025.
Current report
In September 2026, we reached first production from Surmont Pad 104W-B in Canada, ahead of schedule. During the quarter, we also entered into a commercial LNG agreement, expanding our commercial offtake from 12.2 MTPA to 13.2 MTPA.
Current report
In November 2026, we declared an increase to our quarterly ordinary dividend from $0.84 per share to $0.93 per share, representing an 11 percent increase.
Current report
•Raised quarterly ordinary dividend by 11% to $0.93 per share, consistent with top-quartile S&P 500 growth objective;
Current report
•Advanced Willow critical path items with module fabrication scope over 75% complete; on track for first oil in early 2029;
Current report
•Realized record Permian completion efficiency with 15% more pumping hours than prior year average;
Current report
•Achieved first production ahead of schedule and under budget at Surmont Pad 104W-B in Canada;
Current report
•Expanded commercial LNG offtake portfolio to 13 MTPA;
Current report
Full-year 2026 capital expenditures and DD&A guidance is unchanged.
Current report
Purchased commodities for the three- and nine-month periods ended September 30, 2026, increased $1,566 million and $3,288 million, respectively. Increases in the third quarter were primarily due to higher crude and gas prices and volumes. Increases in the nine-month period ended September 30, 2026, were primarily due to higher crude prices and volumes and higher gas volumes, partly offset by lower gas prices.
Current report
Alaska reported earnings of $423 million and $1,239 million in the three- and nine-month periods ended September 30, 2026, respectively, compared with earnings of $130 million and $592 million for the same periods of 2025.
Current report
Earnings in the third quarter of 2026 included higher sales revenues resulting from higher realized prices of $302 million and higher produced volumes of $25 million.
Current report
Production in the nine-month period decreased due to normal field decline, partly offset by improved base performance and new wells online.
Current report
Coyote Expansion Pad First Production
Current report
In August 2026, the Coyote expansion pad project in the Greater Kuparuk area achieved first production.
Current report
Average production decreased 11 MBOED and 18 MBOED in the three- and nine-month periods ended September 30, 2026, respectively. Decreases to production were primarily driven by asset dispositions. Production contributed by new wells brought online from our development programs more than offset normal field decline across the Lower 48 segment.
Current report
Assets Sold
Current report
Canada reported earnings of $179 million and $584 million in the three- and nine-month periods ended September 30, 2026, respectively, compared with earnings of $188 million and $593 million for the same periods of 2025.
Current report
Earnings in the third quarter of 2026 included higher sales revenues resulting from higher realized prices of $142 million. This increase was partly offset by lower volumes of $65 million and the timing of sales.
Current report
Surmont Pad 104W-B First Production
Current report
In September 2026, we reached first production from Surmont Pad 104W-B in Canada.
Current report
Average consolidated production decreased 14 MBOED and eight MBOED in the three- and nine-month periods ended September 30, 2026, respectively. Decreases to production were primarily driven by normal field decline.
Current report
Recent and Pending Transactions
Current report
In July 2026, we entered into an agreement with a wholly owned subsidiary of bp to acquire a 42 percent direct equity holding in a non-operated joint venture, supporting the ongoing redevelopment of four large-scale, currently producing oil fields in the Kirkuk area of northern Iraq. This transaction is expected to close by the end of 2026, subject to regulatory approvals and other customary closing conditions, with an effective date of July 1, 2026. See Note 3.
Current report
Earnings in the third quarter of 2026 included higher sales revenues resulting from higher realized prices of $92 million partly offset by lower volumes of $29 million. Additional increases to earnings include higher earnings from equity affiliates of $153 million, primarily due to higher LNG marker prices and higher volumes.
Current report
These production decreases were partly offset by Bohai Bay development activity in China.
Current report
In July 2026, we entered into an agreement with a wholly owned subsidiary of bp to acquire a 42 percent direct equity holding in a non-operated joint venture, supporting the ongoing redevelopment of four large-scale, currently producing oil fields in the Kirkuk area of northern Iraq. This transaction is expected to close by the end of 2026, subject to regulatory approvals and other customary closing conditions, with an effective date of July 1, 2026. See Note 3.
Current report
In November 2026, we declared an increase to our quarterly ordinary dividend from $0.84 per share to $0.93 per share, representing an 11 percent increase. The dividend is payable on December 1, 2026, to shareholders of record on November 16, 2026.
Removed paragraphs (24)
Previous report
In August 2026, we declared a third-quarter ordinary dividend of $0.84 per share.
Previous report
•Declared third-quarter ordinary dividend of $0.84 per share;
Previous report
•Reaffirmed full-year guidance items;
Previous report
•Signed agreements to sell noncore Lower 48 assets for $1.7 billion, which closed in July, achieving $5 billion disposition target ahead of schedule;
Previous report
•Signed an agreement to acquire a 42% interest in a joint venture in the Kirkuk area of northern Iraq, accessing long-life, conventional redevelopment opportunities at an attractive entry cost and competitive cost of supply; closing expected by year-end 2026;
Previous report
•Executed an agreement for re-entry into Syria, leveraging existing infrastructure to restore and increase production at onshore fields;
Previous report
•Advanced commercial LNG strategy with additional 2 MTPA of offtake agreements, bringing total LNG offtake to 12 MTPA; and
Previous report
All full-year guidance items remain unchanged.
Previous report
Purchased commodities for the three- and six-month periods ended June 30, 2026, increased $1,627 million and $1,722 million, respectively, primarily due to higher crude prices partly offset by lower gas prices.
Previous report
Alaska reported earnings of $522 million and $816 million in the three- and six-month periods ended June 30, 2026, respectively, compared with earnings of $135 million and $462 million for the same periods of 2025.
Previous report
Earnings in the second quarter of 2026 included higher sales revenues resulting from higher realized prices of $480 million. This increase was partly offset by lower produced volumes of $78 million.
Previous report
Average production decreased 20 MBOED and 17 MBOED in the three- and six-month periods ended June 30, 2026, respectively, primarily driven by normal field decline.
Previous report
The production decreases were partly offset by new wells online.
Previous report
Average production decreased 29 MBOED and 19 MBOED in the three- and six-month periods ended June 30, 2026, respectively. Production decreases were primarily driven by normal field decline and dispositions of assets in 2025.
Previous report
Assets Held for Sale
Previous report
Canada reported earnings of $320 million and $405 million in the three- and six-month periods ended June 30, 2026, respectively, compared with earnings of $149 million and $405 million for the same periods of 2025.
Previous report
Earnings in the second quarter of 2026 included higher sales revenues resulting from higher realized prices of $199 million and timing of sales. This increase was partly offset by lower volumes of $113 million and a pending claim of $58 million.
Previous report
The above production increases were partly offset for the three-month period and more than offset for the six-month period by normal field decline.
Previous report
Recent and Pending Acquisitions
Previous report
In July 2026, we entered into an agreement with a wholly owned subsidiary of bp to acquire a 42 percent direct equity holding in a non-operated joint venture, supporting the ongoing redevelopment of four large-scale, currently producing oil fields in the Kirkuk area of northern Iraq. The cash outflow at close is expected to be $0.3 billion to $0.5 billion, including reimbursement of our proportionate share of bp's project costs incurred from the effective date of the agreement through close. In addition, deferred payments of $0.2 billion will be paid no later than three years from the date of close. This transaction is expected to close by the end of 2026, subject to regulatory approvals and other customary closing conditions, with an effective date of July 1, 2026. See Note 3.
Previous report
Earnings in the second quarter of 2026 included higher sales revenues resulting from higher realized prices of $160 million. Decreases to earnings include higher taxes other than income taxes of $40 million due to higher crude prices.
Previous report
Production decreases were offset in the three-month period and partly offset in the six-month period by development activity in Bohai Bay in China.
Previous report
In the second quarter of 2026, we entered into agreements to sell our interests in certain noncore assets in the Lower 48 segment for approximately $1.7 billion, subject to customary closing adjustments. These transactions closed in the third quarter of 2026. See Note 3.
Previous report
In July 2026, we entered into an agreement with a wholly owned subsidiary of bp to acquire a 42 percent direct equity holding in a non-operated joint venture, supporting the ongoing redevelopment of four large-scale, currently producing oil fields in the Kirkuk area of northern Iraq. The cash outflow at close is expected to be $0.3 billion to $0.5 billion, including reimbursement of our proportionate share of bp's project costs incurred from the effective date of the agreement through close. In addition, deferred payments of $0.2 billion will be paid no later than three years from the date of close. This transaction is expected to close by the end of 2026, subject to regulatory approvals and other customary closing conditions, with an effective date of July 1, 2026. See Note 3.
Reworded paragraphs (66)
Previous wording
ConocoPhillips is one of the world’s leading E&P companies based on production and reserves, with operations and activities in 15 countries. Our diverse, low cost of supply portfolio includes resource-rich unconventional plays in North America; conventional assets in North America, Europe, Africa and Asia; global LNG developments; oil sands in Canada; and an inventory of global exploration prospects. Headquartered in Houston, Texas, at June 30, 2026, we employed approximately 9,600 people worldwide and had total assets of $124 billion.
Current wording
ConocoPhillips is one of the world’s leading E&P companies based on production and reserves, with operations and activities in 15 countries. Our diverse, low cost of supply portfolio includes resource-rich unconventional plays in North America; conventional assets in North America, Europe, Africa and Asia; global LNG developments; oil sands in Canada; and an inventory of global exploration prospects. Headquartered in Houston, Texas, at September 30, 2026, we employed approximately 9,600 people worldwide and had total assets of $126 billion.
Previous wording
Geopolitical tensions in the Middle East, including the ongoing conflict involving Iran, have increased volatility in global energy markets and may elevate risks to regional operations, infrastructure and shipping routes. We have investments in LNG facilities in Qatar, including one producing asset and two projects under construction. Our investments have not been damaged, though production remained constrained through the second quarter of 2026, and there are no indications of impairment. However, further escalation could adversely affect operations, LNG transportation and construction and have broader supply chain impacts. Production from our Qatar investments was approximately four percent of total company production volumes in 2025. The company continues to monitor developments and prioritize the safety of personnel and the integrity of our operations. See Note 6.
Current wording
Geopolitical tensions in the Middle East, including the ongoing conflict involving Iran, have increased volatility in global energy markets and may elevate risks to regional operations, infrastructure and shipping routes. We have investments in LNG facilities in Qatar, including one producing asset and two projects under construction. Our investments have not been physically damaged. While production remained constrained through the third quarter of 2026, we have not identified indicators of impairment for our investments in the region as of September 30, 2026. However, further escalation could adversely affect operations, LNG transportation and construction and have broader supply chain impacts. Production from our Qatar investments was approximately four percent of total company production volumes in 2025. The company continues to monitor developments and prioritize the safety of personnel and the integrity of our operations. See Note 6.
Previous wording
In the third quarter of 2025, we announced a total disposition target of $5 billion by year-end 2026. In the second quarter of 2026, we entered into agreements to sell our interests in certain noncore assets in the Lower 48 segment for approximately $1.7 billion, subject to customary closing adjustments. These transactions closed in the third quarter of 2026. These transactions, coupled with our 2025 dispositions, achieved the $5 billion disposition target. See Note 3.
Current wording
In the third quarter of 2025, we announced a total disposition target of $5 billion by year-end 2026. In the third quarter of 2026, we sold our interests in certain noncore assets in the Lower 48 segment for approximately $1.7 billion after customary adjustments. As a result of these transactions, coupled with our 2025 dispositions, we achieved the $5 billion disposition target. See Note 3.
Previous wording
In July 2026, we entered into an agreement with a wholly owned subsidiary of BP p.l.c. (bp) to acquire a 42 percent direct equity holding in a non-operated joint venture, supporting the ongoing redevelopment of four large-scale, currently producing oil fields in the Kirkuk area of northern Iraq. The cash outflow at close is expected to be $0.3 billion to $0.5 billion, including reimbursement of our proportionate share of bp's project costs incurred from the effective date of the agreement through close. In addition, deferred payments of $0.2 billion will be paid no later than three years from the date of close. This transaction is expected to close by the end of 2026, subject to regulatory approvals and other customary closing conditions, with an effective date of July 1, 2026. See Note 3.
Current wording
In July 2026, we entered into an agreement with a wholly owned subsidiary of BP p.l.c. (bp) to acquire a 42 percent direct equity holding in a non-operated joint venture, supporting the ongoing redevelopment of four large-scale, currently producing oil fields in the Kirkuk area of northern Iraq. This transaction is expected to close by the end of 2026, subject to regulatory approvals and other customary closing conditions, with an effective date of July 1, 2026. See Note 3.
Previous wording
Operationally, we remain focused on safely executing the business while also progressing key strategic initiatives. During the second quarter of 2026, we entered into certain commercial LNG agreements, expanding our commercial offtake from 10.2 MTPA to 12.2 MTPA.
Current wording
Operationally, we remain focused on safely executing the business while also progressing key strategic initiatives.
Previous wording
Production was 2,248 MBOED in the second quarter of 2026, a decrease of 143 MBOED from the same period a year ago. After adjusting for impacts from closed acquisitions and dispositions, second-quarter 2026 production decreased by 98 MBOED or four percent from the same period a year ago.
Current wording
Production was 2,302 MBOED in the third quarter of 2026, a decrease of 97 MBOED from the same period a year ago. After adjusting for impacts from closed acquisitions and dispositions, third-quarter 2026 production decreased by 40 MBOED or two percent from the same period a year ago.
Previous wording
Second-quarter 2026 production resulted in $7.4 billion of cash provided by operating activities. We returned $3.0 billion to shareholders, consisting of $2.0 billion through share repurchases and $1.0 billion through our ordinary dividend. We ended the quarter with cash, cash equivalents, restricted cash and short-term investments totaling $8.1 billion and long-term investments in debt securities of $1.2 billion.
Current wording
During the third quarter of 2026, we generated $7.2 billion of cash provided by operating activities. We returned $3.4 billion to shareholders, consisting of $2.4 billion through share repurchases and $1.0 billion through our ordinary dividend. We ended the quarter with cash, cash equivalents and restricted cash and short-term investments totaling $10.4 billion and long-term investments in debt securities of $1.1 billion.
Previous wording
Also in the second quarter of 2026, we reinvested $3.0 billion into the business in the form of capital expenditures and investments, with over half of the expenditures related to flexible, short-cycle unconventional plays in the Lower 48 segment.
Current wording
Also in the third quarter of 2026, we reinvested $3.1 billion into the business in the form of capital expenditures and investments, with over half of the expenditures related to flexible, short-cycle unconventional plays in the Lower 48 segment.
Previous wording
The following table presents average prices for the second quarter of 2026 compared to the second quarter of 2025.
Current wording
The following table presents average prices for the third quarter of 2026 compared to the third quarter of 2025.
Previous wording
Oil and bitumen prices were higher in the second quarter of 2026 compared with the same period of 2025 as Middle East supply disruptions that began in the first quarter of 2026 persisted through the second quarter.
Current wording
Oil and bitumen prices were higher in the third quarter of 2026 compared with the same period of 2025 as Middle East supply disruptions that began in the first quarter of 2026 persisted through the third quarter.
Previous wording
U.S. Henry Hub prices decreased relative to the first quarter of 2026 due to seasonally softer demand coupled with rising domestic production and above normal inventory levels. Prices decreased relative to the same quarter last year as rising domestic production contributed to a well-supplied market. The risk of volatility in regional markers remains throughout 2026.
Current wording
U.S. Henry Hub prices were slightly lower relative to the same period of 2025 as rising domestic production contributed to a well-supplied market. The risk of volatility in regional markers remains throughout 2026.
Previous wording
Total realized prices were higher in the second quarter of 2026 compared with the same period of 2025 primarily driven by higher industry prices for oil.
Current wording
Total realized prices were higher in the third quarter of 2026 compared with the same period of 2025 primarily driven by higher industry prices for oil.
Previous wording
•Reported second-quarter 2026 earnings per share of $3.23;
Current wording
•Reported third-quarter 2026 earnings per share of $3.34;
Previous wording
•Generated cash provided by operating activities of $7.4 billion;
Current wording
•Generated cash provided by operating activities of $7.2 billion;
Previous wording
•Distributed$3.0 billion to shareholders, including $2.0 billion through share repurchases and $1.0 billion through the ordinary dividend;
Current wording
•Distributed $3.4 billion to shareholders, consisting of $2.4 billion through share repurchases and $1.0 billion through the ordinary dividend;
Previous wording
•Delivered total company and Lower 48 production of 2,248 MBOED and 1,479 MBOED, respectively;
Current wording
•Delivered total company and Lower 48 production of 2,302 MBOED and 1,517 MBOED, respectively;
Previous wording
•Ended the quarter with cash, cash equivalents and restricted cash of $7.0 billion, short-term investments of $1.1 billion and long-term investments of $1.2 billion.
Current wording
•Ended the quarter with cash, cash equivalents and restricted cash and short-term investments of $10.4 billion and long-term investments of $1.1 billion.
Previous wording
Third-quarter 2026 production is expected to be 2.29 to 2.32 MMBOED.
Current wording
Fourth-quarter 2026 production is expected to be 2.32 to 2.36 MMBOED.
Previous wording
Unless otherwise indicated, discussion of consolidated results for the three- and six-month periods ended June 30, 2026, is based on a comparison with the corresponding period of 2025.
Current wording
Unless otherwise indicated, discussion of consolidated results for the three- and nine-month periods ended September 30, 2026, is based on a comparison with the corresponding period of 2025.
Previous wording
Total production in the second quarter of 2026 was 2,248 MBOED, a decrease of 143 MBOED or six percent from the same period a year ago. Total production in the six-month period ended June 30, 2026, was 2,278 MBOED, a decrease of 113 MBOED or five percent from the same period a year ago. Production decreases were primarily driven by normal field decline.
Current wording
Total production in the third quarter of 2026 was 2,302 MBOED, a decrease of 97 MBOED or four percent from the same period a year ago. Total production in the nine-month period ended September 30, 2026, was 2,286 MBOED, a decrease of 107 MBOED or four percent from the same period a year ago. Production decreases were primarily driven by normal field decline.
Previous wording
After adjusting for impacts from closed acquisitions and dispositions, second-quarter 2026 production decreased by 98 MBOED or four percent from the same period a year ago. After adjusting for closed acquisitions and dispositions, production in the six-month period ended June 30, 2026, decreased by 57 MBOED or four percent.
Current wording
After adjusting for impacts from closed acquisitions and dispositions, third-quarter 2026 production decreased by 40 MBOED or two percent from the same period a year ago. After adjusting for closed acquisitions and dispositions, production in the nine-month period ended September 30, 2026, decreased by 49 MBOED or two percent.
Previous wording
Sales and other operating revenues for the three- and six-month periods ended June 30, 2026, increased $5,157 million and $4,401 million, respectively. Increases for the three- and six-month periods include higher crude and bitumen prices of $3,730 million and $3,988 million, respectively. For the three- and six-month periods, these increases were partly offset by lower volumes of $409 million and $835 million, respectively.
Current wording
Sales and other operating revenues for the three- and nine-month periods ended September 30, 2026, increased $4,404 million and $8,805 million, respectively. Increases for the three- and nine-month periods include higher realized prices of $3,178 million and $6,700 million, respectively. For the three- and nine-month periods, these increases were partly offset by lower produced volumes of $281 million and $1,126 million, respectively.
Previous wording
Production and operating expensesfor the three- and six-month periods ended June 30, 2026, decreased $141 million and $371 million, respectively, primarily due to increased efficiencies.
Current wording
Production and operating expensesfor the three- and nine-month periods ended September 30, 2026, decreased $192 million and $563 million, respectively, primarily due to increased efficiencies.
Previous wording
DD&A for the three- and six-month periods ended June 30, 2026, increased $145 million and $305 million, respectively, primarily due to higher DD&A rates, driven by higher net book values from the finalized allocations of our Marathon Oil purchase price to specific assets and lower proved developed reserves as of December 31, 2025.
Current wording
DD&A for the three- and nine-month periods ended September 30, 2026, increased $88 million and $393 million, respectively, primarily due to higher DD&A rates, driven by higher net book values from the finalized allocations of our Marathon Oil purchase price to specific assets and lower proved developed reserves as of December 31, 2025.
Previous wording
Unless otherwise indicated, discussion of segment results for the three- and six-month periods ended June 30, 2026, is based on a comparison with the corresponding period of 2025 and are shown after-tax.
Current wording
Unless otherwise indicated, discussion of segment results for the three- and nine-month periods ended September 30, 2026, is based on a comparison with the corresponding period of 2025 and is shown after-tax.
Previous wording
Earnings in the six-month period ended June 30, 2026 included higher sales revenues resulting from higher realized prices of $532 million. This increase was partly offset by lower produced volumes of $138 million and higher taxes other than income of $109 million primarily driven by the absence of an impact from the settlement of a contingent matter.
Current wording
Earnings in the nine-month period ended September 30, 2026, included higher sales revenues resulting from higher realized prices of $838 million. This increase was partly offset by lower produced volumes of $98 million. Other decreases to earnings include higher taxes other than income taxes of $139 million primarily driven by the absence of an impact from the settlement of a contingent matter, higher property taxes and higher production taxes driven by higher prices.
Previous wording
Average consolidated production increased seven MBOED and decreased six MBOED in the three- and six-month periods ended June 30, 2026, respectively. Production in the three-month period increased due to the absence of field-wide turnarounds in the Greater Ekofisk Area of Norway. Both periods also benefited from new wells online and improved performance in Equatorial Guinea, Libya and Norway.
Current wording
Average production increased three MBOED and decreased 10 MBOED in the three- and nine-month periods ended September 30, 2026, respectively. Production in the three-month period increased due to improved base performance and new wells online, partly offset by normal field decline.
Previous wording
The Lower 48 segment consists of operations located in the U.S. Lower 48 states and commercial operations. As of June 30, 2026, the Lower 48 contributed 69 percent of our consolidated liquids production and 74 percent of our consolidated natural gas production.
Current wording
The Lower 48 segment consists of operations located in the U.S. Lower 48 states and commercial operations. As of September 30, 2026, the Lower 48 contributed 69 percent of our consolidated liquids production and 75 percent of our consolidated natural gas production.
Previous wording
Lower 48 reported earnings of $2,584 million and $3,987 million in the three- and six-month periods ended June 30, 2026, respectively, compared with earnings of $1,399 million and $3,189 million for the same periods of 2025.
Current wording
Lower 48 reported earnings of $2,461 million and $6,448 million in the three- and nine-month periods ended September 30, 2026, respectively, compared with earnings of $1,240 million and $4,429 million for the same periods of 2025.
Previous wording
Earnings in the second quarter of 2026 included higher sales revenues resulting from higher realized crude and NGL prices of $1,892 million. Additional increases to earnings include lower production and operating expenses of $155 million primarily driven by efficiencies. Decreases to earnings include lower gas prices of $459 million driven by lower gas realizations and lower volumes of $125 million. Additional decreases to earnings include the absence of a gain on a disposition of $254 million and higher DD&A of $112 million, primarily driven by higher rates, due to higher net book values from the finalized allocations of our Marathon Oil purchase price to specific assets and lower proved developed reserves as of December 31, 2025.
Current wording
Earnings in the third quarter of 2026 included higher sales revenues resulting from higher realized prices of $1,822 million. Additional increases to earnings include lower production and operating expenses of $78 million primarily driven by efficiencies. Decreases to earnings include lower volumes of $94 million. Additional decreases to earnings include higher DD&A of $60 million, primarily driven by higher rates, due to higher net book values from the finalized allocations of our Marathon Oil purchase price to specific assets and lower proved developed reserves as of December 31, 2025.
Previous wording
Earnings in the six-month period ended June 30, 2026 included higher sales revenues resulting from higher realized crude prices of $1,868 million. Additional increases to earnings include lower production and operating expenses of $341 million, primarily driven by efficiencies. Decreases to earnings include lower gas prices of $673 million driven by lower gas realizations and lower volumes of $208 million. Additional decreases to earnings include the absence of a gain on a disposition of $242 million, and higher DD&A of $227 million, primarily driven by higher rates, due to higher net book values from the finalized allocations of our Marathon Oil purchase price to specific assets and lower proved developed reserves as of December 31, 2025.
Current wording
Earnings in the nine-month period ended September 30, 2026, included higher sales revenues resulting from higher realized crude and NGL prices of $3,211 million. Additional increases to earnings include lower production and operating expenses of $420 million, primarily driven by efficiencies. Decreases to earnings include lower gas prices of $611 million driven by lower gas realizations and lower volumes of $315 million. Additional decreases to earnings include higher DD&A of $288 million, primarily driven by higher rates, due to higher net book values from the finalized allocations of our Marathon Oil purchase price to specific assets and lower proved developed reserves as of December 31, 2025, and the absence of a gain on a disposition of $242 million.
Previous wording
In the second quarter of 2026, we entered into agreements to sell our interests in certain noncore assets in the Lower 48 segment for approximately $1.7 billion, subject to customary closing adjustments. Production from these assets averaged approximately 21 MBOED in 2025. These transactions closed in the third quarter of 2026. See Note 3.
Current wording
In the third quarter of 2026, we sold our interests in certain noncore assets in the Lower 48 segment for net proceeds of $1.7 billion. Production from these assets averaged approximately 24 MBOED in 2025. See Note 3.
Previous wording
*Average sales prices include unutilized transportation costs.
Current wording
*Average realized prices include unutilized transportation costs.
Previous wording
The Canada segment operations include the Surmont oil sands development in Alberta, the Montney unconventional play in British Columbia and commercial operations. As of June 30, 2026, Canada contributed eight percent of our consolidated liquids production and four percent of our consolidated natural gas production.
Current wording
The Canada segment operations include the Surmont oil sands development in Alberta, the Montney unconventional play in British Columbia and commercial operations. As of September 30, 2026, Canada contributed eight percent of our consolidated liquids production and five percent of our consolidated natural gas production.
Previous wording
Earnings in the six-month period ended June 30, 2026 included higher sales revenues resulting from higher realized prices of $254 million and timing of sales. This increase was offset by lower volumes of $187 million and pending claims of $121 million. Additional decreases to earnings included lower other income of $56 million primarily from a change in the fair value measurement associated with the Surmont contingent consideration arrangement. See Note 10.
Current wording
Earnings in the nine-month period ended September 30, 2026, included higher sales revenues resulting from higher realized prices of $393 million and the timing of sales. This increase was offset by lower volumes of $258 million and pending claims of $121 million. Additional decreases to earnings included lower other income of $56 million primarily from a change in the fair value measurement associated with the Surmont contingent consideration arrangement. See Note 10.
Previous wording
Average production decreased 39 MBOED and 29 MBOED in the three- and six-month periods ended June 30, 2026, respectively. Decreases to production resulted from higher variable royalties in Surmont following a post-payout event in 2025 and a rate increase due to higher prices, as well as normal field decline. The Surmont royalties are based on a sliding scale ranging from 25 percent to 40 percent, calculated under the oil sands royalty regime as a percentage of gross revenue, net of allowable deductions post-payout, indexed to WTI prices between $55 CAD and $120 CAD.
Current wording
Average production decreased 22 MBOED and 28 MBOED in the three- and nine-month periods ended September 30, 2026, respectively. Decreases to production resulted from higher variable royalties in Surmont following a post-payout event in 2025 and a rate increase due to higher prices, as well as normal field decline. The Surmont royalties are based on a sliding scale ranging from 25 percent to 40 percent, calculated under the oil sands royalty regime as a percentage of gross revenue, net of allowable deductions post-payout, indexed to WTI prices between $55 CAD and $120 CAD.
Previous wording
Production and sales prices exclude equity affiliates. See Summary Operating Statistics for equity affiliate totals.
Current wording
Production and realized prices exclude equity affiliates. See Summary Operating Statistics for equity affiliate totals.
Previous wording
Europe, Middle East and North Africa reported earnings of $346 million and $611 million in the three- and six-month periods ended June 30, 2026, respectively, compared with earnings of $237 million and $656 million for the same periods of 2025.
Current wording
Europe, Middle East and North Africa reported earnings of $362 million and $973 million in the three- and nine-month periods ended September 30, 2026, respectively, compared with earnings of $327 million and $983 million for the same periods of 2025.
Previous wording
Earnings in the second quarter of 2026 included higher revenues resulting from higher realized prices of $151 million. Decreases to earnings included lower earnings from equity affiliates of $18 million, primarily driven by lower volumes, and tax impacts of $29 million due to a shift in our mix of income among taxing jurisdictions.
Current wording
Earnings in the third quarter of 2026 included higher sales revenues resulting from higher realized prices of $146 million. Decreases to earnings included lower earnings from equity affiliates of $22 million, primarily driven by lower volumes, and tax impacts of $109 million due to a shift in our mix of income among taxing jurisdictions.
Previous wording
Decreases to earnings in the six-month period ended June 30, 2026 included tax impacts of $96 million due to a shift in our mix of income among taxing jurisdictions, lower earnings from equity affiliates of $38 million, primarily driven by lower volumes, and lower volumes of $22 million. The decreases were partly offset by higher realized prices of $140 million.
Current wording
Decreases to earnings in the nine-month period ended September 30, 2026, included tax impacts of $218 million due to a shift in our mix of income among taxing jurisdictions, lower earnings from equity affiliates of $60 million, primarily driven by lower volumes, and lower volumes of $34 million. The decreases were partly offset by higher realized prices of $296 million.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Production decreases were partly offset by new wells online in Libya and improved performance in Equatorial Guinea and Norway.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Decreases to production were partly offset by new wells online from our development programs in the Delaware Basin, Eagle Ford, Midland Basin and Bakken.
Previous report — wording carried elsewhere
In June 2026, we and a third-party operator jointly signed an agreement with the Syrian government and Syrian Petroleum Company to increase production from, and further develop, certain gas fields in Syria, from which we do not expect material impacts in 2026.