ConocoPhillips Q1 EPS $1.89, Plans $12–12.5B Capex as CFO Warns Supply Crunch
ConocoPhillips posted Q1 EPS of $1.89, beating analysts as oil prices averaged $50.36 per barrel. Management raised its 2026 capital budget to $12–12.5 billion and forecasts over $25 billion in operating cash flow while CFO warns of critical oil shortages in June–July.
1. Strong Q1 Earnings
ConocoPhillips posted first-quarter earnings of $1.89 per share, outpacing consensus as realized prices reached $50.36 per barrel. Higher margins across its portfolio drove results despite volatile market conditions.
2. 2026 Capital Budget and Cash Flow Outlook
The company boosted its 2026 capital expenditure plan to $12–12.5 billion, focusing on additional drilling in the Permian Basin while preserving financial flexibility. Management projects over $25 billion in operating cash flow to support dividend payments, share buybacks and debt reduction.
3. Warning of Imminent Supply Shortages
Chief Financial Officer Andy O’Brien cautioned that import-dependent nations may face critical oil shortages by June–July as vessels that departed the Persian Gulf in late February complete deliveries. He highlighted that sustained closure of the Strait of Hormuz will exacerbate the supply pinch.