ConocoPhillips raised its quarterly dividend by 11% on November 5. This followed a third-quarter earnings report that surpassed Wall Street expectations. The Houston-based producer used higher crude prices and internal cost-cutting to offset production declines. It reported adjusted earnings of $3.27 per share for the period ending September 30. Investors are now watching whether these payouts can continue as oil prices show volatility.
ConocoPhillips Beats Profit Estimates Amid Higher Crude Prices
ConocoPhillips reported adjusted profit of $3.27 per share. This beat the $2.97 consensus estimate compiled by LSEG, as reported by boereport.com. The company previously posted $3.24 in adjusted EPS against a $2.89 consensus, according to 247wallst.com.
Benchmark Brent crude averaged about $89.27 per barrel for the quarter ended September 30, according to boereport.com. This is an increase of over 31% from a year earlier. In the prior period, realized crude prices rise reached $99.40 per barrel.
Production output contracted during the quarter. The company reported 2.3 million barrels of oil equivalent per day (boepd), down from 2.4 million boepd in the same period last year.
Company data shows production totaled 2.302 million barrels of oil equivalent a day. This was 97,000 fewer barrels daily than in the third quarter of 2025. Excluding completed acquisitions and dispositions, this represents a 2% drop. Growth in the Lower 48 states was outweighed by higher royalties at Surmont and the impact of the Middle East conflict on operations in Qatar.
Dividend and Cash Flow Plans
The company lifted its quarterly dividend to 93 cents per share from 84 cents. Board Chair Ryan Lance noted that the company doubled quarterly share repurchases and reached asset disposition targets ahead of schedule. Management now targets returning 45% of operating cash flow in 2026, up from approximately 40% in the first half of the year.
CEO Andy O’Brien confirmed the company’s financial goals during the earnings call. He stated the company is, in the words of Ryan Lance, on track to achieve our $7 billion free cash flow inflection by 2029,
and addressed investor questions regarding the company’s trajectory:
Those opportunities can support growth through the next decade.
Andy O’Brien, CEO
Asset Divestment Evaluations
The company is evaluating the potential sale of its Norway business and the Teesside asset in the UK. These reviews follow an unsolicited offer. O’Brien confirmed these evaluations but noted that no final decisions regarding a divestment have been made. It is not yet known if the company will proceed with these sales or who may have made the offer.
Earlier coverage: Energy Sector Rallies Nearly 12 Percent As Crude Prices Surge