Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis is the company’s analysis of its financial performance and of significant trends that may affect future performance. It should be read in conjunction with the financial statements and notes. It contains forward-looking statements including, without limitation, statements relating to the company’s plans, strategies, objectives, expectations and intentions that are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The words “ambition,” “anticipate,” “believe,” “budget,” “continue,” “could,” “effort,” “estimate,” “expect,” “forecast,” “goal,” “guidance,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “predict,” “projection,” “seek,” “should,” “target,” “will,” “would” and similar expressions identify forward-looking statements. The company does not undertake to update, revise or correct any of the forward-looking information unless required to do so under the federal securities laws. Readers are cautioned that such forward-looking statements should be read in conjunction with the company’s disclosures under the heading: “CAUTIONARY STATEMENT FOR THE PURPOSES OF THE ‘SAFE HARBOR’ PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995,” beginning on page 43**.

The terms “earnings” and “loss” as used in Management’s Discussion and Analysis refer to net income (loss).

Business Environment and Executive Overview

ConocoPhillips is one of the world’s leading E&P companies based on production and reserves, with operations and activities in 14 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 March 31, 2026, we employed approximately 9,700 people worldwide and had total assets of $123 billion.

Overview

At ConocoPhillips, we anticipate that commodity prices will continue to be cyclical and volatile, and our view is that a successful business strategy in the E&P industry must be resilient in lower price environments while also retaining upside during periods of higher prices. As such, we are unhedged, remain committed to our disciplined investment framework and continually monitor market fundamentals, including the impacts associated with geopolitical tensions and conflicts, global demand for our products, oil and gas inventory levels, governmental policies, tariffs, inflation and supply chain disruptions. We continue to closely monitor the macroeconomic environment and the ongoing market volatility in the energy landscape and across global markets for implications to our business, results of operations and financial condition.

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. In March 2026, due to the conflict, QatarEnergy constrained LNG production at its major Ras Laffan facilities. Our investments have not been damaged, 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 3.

As the global energy industry continues to evolve, we remain committed to creating long-term value for our stockholders. We believe ConocoPhillips plays an essential role in responsibly meeting the global demand for energy, while continuing to deliver competitive returns on and of capital and working to meet our previously established emissions-reduction targets. Our value proposition to deliver competitive returns to stockholders through price cycles is guided by our foundational principles which consist of maintaining balance sheet strength, providing peer-leading distributions, making disciplined investments and demonstrating responsible and reliable ESG performance.

In 2025, we made clear commitments to enhance portfolio value and structural profitability, and we remain focused on

seeing those commitments through to completion. In the second half of 2025, we announced incremental cost reductions

and margin enhancements exceeding $1 billion anticipated on a run-rate basis by year-end 2026, reflecting continued

progress toward delivering sustainable improvements in our cost structure and margins.

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Management’s Discussion and Analysis			Table of Contents

Production was 2,309 MBOED in the first quarter of 2026, a decrease of 80 MBOED from the same period a year ago. After adjusting for impacts from closed acquisitions and dispositions, first-quarter 2026 production decreased by 14 MBOED or one percent from the same period a year ago.

First-quarter 2026 production resulted in $4.3 billion of cash provided by operating activities. We returned $2.0 billion to shareholders, consisting of $1.0 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 $6.7 billion and long-term investments in debt securities of $1.2 billion.

Also in the first quarter of 2026, we re-invested $2.9 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.

In April 2026, we declared a second-quarter ordinary dividend of $0.84 per share.

			ConocoPhillips 2026 Q1 10-Q			26

Management’s Discussion and Analysis			Table of Contents

Business Environment

Commodity prices are the most significant factor impacting our profitability and related returns on and of capital to our shareholders. Dynamics that could influence world energy markets and commodity prices include, but are not limited to, global economic health, supply or demand disruptions or fears thereof caused by civil unrest, global pandemics, military conflicts, actions taken by OPEC Plus and other major oil producing countries, environmental laws, tariffs, governmental policies and weather-related disruptions. Our strategy is to create value through price cycles by delivering on the financial, operational and ESG priorities that underpin our value proposition.

Our earnings and operating cash flows generally correlate with price levels for crude oil and natural gas, which are subject to factors external to the company and over which we have no control. The following graph depicts the trend in average benchmark prices for WTI crude oil, Brent crude oil and U.S. Henry Hub natural gas:

The following table presents average prices for the first quarter of 2026 compared to the first quarter of 2025.

			Three Months Ended March 31
Industry Prices			2026			2025			Change
Brent ($ per BBL)			80.61			75.66			7		%
WTI ($ per BBL)			71.93			71.42			1		%
Henry Hub ($ per MMBTU)			5.05			3.65			38		%
Average Realized Prices
Crude ($ per BBL)			73.47			71.65			3		%
Bitumen ($ per BBL)			50.37			45.29			11		%
Gas ($ per MCF)			4.09			5.62			(27)		%
Total ($ per BOE)			50.36			53.34			(6)		%

Oil and bitumen prices were higher in the first quarter of 2026 compared to the same period of 2025 as Middle East supply disruptions corresponded to higher market prices.

U.S. Henry Hub prices improved due to Winter Storm Fern impacts on market supplies. The risk of volatility in regional markers remains throughout 2026.

Total realized prices were lower in the first quarter of 2026 compared to the same period of 2025 despite increased commodity prices, primarily due to lower realized gas prices in the Permian.

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Key Operating and Financial Summary

• Reported first-quarter 2026 earnings per share of $1.78;

• Generated cash provided by operating activities of $4.3 billion;

• Declared second-quarter ordinary dividend of $0.84 per share;

• Updated full-year production and capital guidance, operating cost guidance unchanged;

• Delivered total company and Lower 48 production of 2,309 MBOED and 1,453 MBOED, respectively;

• Distributed $2.0 billion to shareholders, including $1.0 billion through share repurchases and $1.0 billion through the ordinary dividend;

• Conducted successful Willow winter construction season with project achieving 50% completion;

• Completed four-well Alaska winter exploration program with evaluation underway and secured high-priority acreage in National Petroleum Reserve in Alaska (NPR-A) lease sale;

• Enhanced Lower 48 capital efficiency by more than doubling percentage of 3-mile plus lateral length wells drilled compared with prior year;

• Executed LNG tolling agreement for third-party operated gas volumes in Equatorial Guinea, extending life of LNG facility well into the next decade; and

• Ended the quarter with cash, cash equivalents, restricted cash and short-term investments of $6.7 billion and long-term investments of $1.2 billion.

Outlook

Production and Capital

For the second quarter, the company is excluding Qatar from production guidance, given uncertainty surrounding the conflict in the Middle East. Second-quarter production is expected to be 2.185 to 2.215 MMBOED.

Full-year production is expected to be 2.295 to 2.325 MMBOED. This reflects a 20 MBOED annual adjustment for Qatar, given the exclusion of Qatar production from second-quarter guidance, as well as a 15 MBOED annual royalty rate adjustment at Surmont due to higher oil prices.

Capital spending for 2026 is expected to be $12 to $12.5 billion.

All other guidance remains unchanged.

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Results of Operations			Table of Contents

Results of Operations

Unless otherwise indicated, discussion of consolidated results for the three-month period ended March 31, 2026, is based on a comparison with the corresponding period of 2025. Throughout the document, certain totals and percentages may differ from the precise sum of the underlying components due to rounding.

Consolidated Results

Summary Operating Statistics

			Three Months Ended March 31
			2026			2025
Average Net Production
Crude oil (MBD)
Consolidated operations			1,100			1,153
Equity affiliates			11			13
Total crude oil			1,111			1,166
Natural gas liquids (MBD)
Consolidated operations			408			394
Equity affiliates			7			8
Total natural gas liquids			415			402
Bitumen (MBD)			118			143
Natural gas (MMCFD)
Consolidated operations			2,822			2,840
Equity affiliates			1,166			1,230
Total natural gas			3,988			4,070
Total Production (MBOED)			2,309			2,389
Total Production (MMBOE)			208			215

			Dollars Per Unit
Average Sales Prices
Crude oil (per BBL)
Consolidated operations			$	73.52		71.61
Equity affiliates			68.79			75.57
Total crude oil			73.47			71.65
Natural gas liquids (per BBL)
Consolidated operations			20.06			24.86
Equity affiliates			46.27			52.34
Total natural gas liquids			20.42			25.40
Bitumen (per BBL)			50.37			45.29
Natural gas (per MCF)
Consolidated operations			3.34			4.76
Equity affiliates			5.87			7.56
Total natural gas			$	4.09		5.62

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			Millions of Dollars
			Three Months Ended March 31
			2026			2025
Exploration Expenses
General administrative, geological and geophysical, lease rental and other			$	75		56
Leasehold impairment			25			18
Dry hole			9			43
Total exploration expenses			$	109		117

Total Company Production

We explore for, produce, transport and market crude oil, bitumen, natural gas, LNG and NGLs on a worldwide basis. In the quarter ended March 31, 2026, our operations were producing in the U.S., Australia, Canada, China, Equatorial Guinea, Libya, Malaysia, Norway and Qatar.

Total production in the first quarter of 2026 was 2,309 MBOED, a decrease of 80 MBOED or three percent from the same period a year ago. Production decreases were primarily driven by normal field decline.

Production decreases were partly offset by new wells online in the Lower 48, Canada, Alaska, China, Australia and Libya.

After adjusting for impacts from closed acquisitions and dispositions, first-quarter 2026 production decreased by 14 MBOED or one percent from the same period a year ago.

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Results of Operations			Table of Contents

Income Statement Analysis

Unless otherwise indicated, all results in Income Statement Analysis are before-tax.

Below is select financial data provided on a consolidated basis. The full Income Statement can be found in Item 1. Financial Statements.

			Millions of Dollars
			Three Months Ended March 31
			2026			2025
Sales and other operating revenues			$	15,761		16,517
Equity in earnings of affiliates			247			392
Purchased commodities			6,283			6,188
Production and operating expenses			2,276			2,506
Depreciation, depletion and amortization			2,906			2,746
Taxes other than income taxes			607			551

Sales and other operating revenues for the three-month period of 2026 decreased $756 million. Decreases include lower volumes of $420 million and lower realized natural gas and NGL prices of $537 million. These decreases were partly offset by higher crude and bitumen prices of $243 million.

Equity in earnings of affiliates for the three-month period of 2026 decreased $145 million due to lower earnings primarily driven by lower prices and production. There were no impairment indicators identified during the quarter, and we continue to monitor the recoverability of our equity method investments.

Purchased commodities for the three-month period of 2026 increased $95 million, primarily due to higher power prices, higher power and gas volumes and higher LNG activity. These increases were partly offset by lower derivatives impacts and crude volumes.

Production and operating expenses for the three-month period of 2026 decreased $230 million, primarily due to lower activity levels and increased efficiencies.

DD&A for the three-month period of 2026 increased $160 million, 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.

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Results of Operations			Table of Contents

Segment Results

Unless otherwise indicated, discussion of segment results for the three-month period ended March 31, 2026, is based on a comparison with the corresponding period of 2025 and are shown after-tax.

A summary of the company's net income (loss) by business segment follows:

			Millions of Dollars
			Three Months Ended March 31
			2026			2025
Alaska			$	294		327
Lower 48			1,403			1,790
Canada			85			256
Europe, Middle East and North Africa			265			419
Asia Pacific			295			311
Segment Totals			2,342			3,103
Corporate and Other			(159)			(254)
Net income (loss)			$	2,183		2,849

For further discussion of segment results, see the following pages.

			ConocoPhillips 2026 Q1 10-Q			32

Results of Operations			Table of Contents

Alaska

			Three Months Ended March 31
			2026			2025
Select financial data by segment before-tax ($MM)
Sales and other operating revenues			$	1,523		1,610
Production and operating expenses			475			506
Depreciation, depletion and amortization			352			355
Taxes other than income taxes			148			60
Net income (loss) ($MM)			$	294		327
Average Net Production
Crude oil (MBD)			176			184
Natural gas liquids (MBD)			15			16
Natural gas (MMCFD)			25			48
Total Production (MBOED)			195			208
Total Production (MMBOE)			18			19
Average Sales Prices
Crude oil ($ per BBL)			$	81.77		76.58
Natural gas ($ per MCF)			3.73			3.87

The Alaska segment primarily explores for, produces, transports and markets crude oil, NGLs and natural gas. As of March 31, 2026, Alaska contributed 12 percent of our consolidated liquids production and one percent of our consolidated natural gas production.

Net Income (Loss)

Alaska reported earnings of $294 million in the first quarter of 2026, compared with earnings of $327 million in the first quarter of 2025.

Earnings in the first quarter of 2026 included lower sales revenues resulting from lower produced volumes of $53 million and timing of sales. These decreases were partly offset by higher realized prices of $68 million. Additional decreases to earnings included higher taxes other than income taxes of $67 million, driven by the absence of an impact from the settlement of a contingent matter, and higher exploration expenses of $20 million, primarily driven by increased seismic work. Increases to earnings included lower production and operating expenses of $24 million driven by lower workover activity.

Production

Average production decreased 13 MBOED in the three-month period of 2026 primarily driven by normal field decline.

The production decreases were partly offset by new wells online in the second half of 2025.

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Lower 48

			Three Months Ended March 31
			2026			2025
Select financial data by segment before-tax ($MM)
Sales and other operating revenues			$	11,080		11,548
Production and operating expenses			1,253			1,491
Depreciation, depletion and amortization			2,051			1,904
Taxes other than income taxes			394			429
Net income (loss) ($MM)			$	1,403		1,790
Average Net Production
Crude oil (MBD)			731			753
Natural gas liquids (MBD)			377			363
Natural gas (MMCFD)			2,067			2,080
Total Production (MBOED)			1,453			1,462
Total Production (MMBOE)			131			132
Average Sales Prices
Crude oil ($ per BBL)			$	70.30		69.47
Natural gas liquids ($ per BBL)			19.82			24.84
Natural gas ($ per MCF)			1.19			2.65

The Lower 48 segment consists of operations located in the U.S. Lower 48 states and commercial operations. As of March 31, 2026, the Lower 48 contributed 68 percent of our consolidated liquids production and 73 percent of our consolidated natural gas production.

Net Income (Loss)

Lower 48 reported earnings of $1,403 million in the first quarter of 2026, compared with earnings of $1,790 million in the first quarter of 2025.

Earnings in the first quarter of 2026 included lower sales revenues resulting from lower overall realized prices of $303 million, driven by lower gas realizations and NGL prices, and lower volumes of $85 million. Additional decreases to earnings include higher DD&A of $115 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. Increases to earnings in the first quarter of 2026 included lower production and operating expenses of $186 million, primarily driven by efficiencies and decreased activity.

Production

Average production decreased nine MBOED in the three-month period of 2026. Production decreases were primarily driven by normal field decline and dispositions of assets in 2025.

Decreases to production were partly offset by new wells online from our development programs in the Delaware Basin, Eagle Ford, Midland Basin and Bakken.

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Results of Operations			Table of Contents

Canada

			Three Months Ended March 31
			2026			2025
Select financial data by segment before-tax ($MM)
Sales and other operating revenues			$	1,017		985
Production and operating expenses			189			201
Depreciation, depletion and amortization			152			131
Taxes other than income taxes			10			9
Net income (loss) ($MM)			$	85		256
Average Net Production
Crude oil (MBD)			16			17
Natural gas liquids (MBD)			7			6
Bitumen (MBD)			118			143
Natural gas (MMCFD)			131			109
Total Production (MBOED)			164			184
Total Production (MMBOE)			15			17
Average Sales Prices
Crude oil ($ per BBL)			$	64.13		62.41
Natural gas liquids ($ per BBL)			29.33			27.96
Bitumen ($ per BBL)			50.37			45.29
Natural gas ($ per MCF)*			1.68			1.35

*Average sales prices include unutilized transportation costs.

The Canada segment operations include the Surmont oil sands development in Alberta, the Montney unconventional play in British Columbia and commercial operations. As of March 31, 2026, Canada contributed nine percent of our consolidated liquids production and five percent of our consolidated natural gas production.

Net Income (Loss)

Canada reported earnings of $85 million in the first quarter of 2026, compared with earnings of $256 million in the first quarter of 2025.

Earnings in the first quarter of 2026 included higher sales revenues resulting from higher realized prices of $46 million and timing of sales. These increases were partly offset by lower volumes of $78 million and a pending claim of $63 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 8.

Production

Average production decreased 20 MBOED in the three-month period of 2026. 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.

Production decreases were partly offset by new wells online in the Montney area.

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Europe, Middle East and North Africa

			Three Months Ended March 31
			2026			2025
Select financial data by segment before-tax ($MM)
Sales and other operating revenues			$	1,627		1,940
Production and operating expenses			257			224
Depreciation, depletion and amortization			239			219
Taxes other than income taxes			15			12
Net income (loss) ($MM)			$	265		419
Consolidated Operations
Average Net Production
Crude oil (MBD)			121			136
Natural gas liquids (MBD)			8			9
Natural gas (MMCFD)			525			538
Total Production (MBOED)			216			235
Total Production (MMBOE)			19			21
Average Sales Prices
Crude oil ($ per BBL)			$	77.71		74.60
Natural gas liquids ($ per BBL)			22.46			23.76
Natural gas ($ per MCF)			11.71			13.16

Production and sales prices exclude equity affiliates. See Summary Operating Statistics for equity affiliate totals.

The Europe, Middle East and North Africa segment consists of operations principally located in the Norwegian sector of the North Sea and the Norwegian Sea, Qatar, Libya, Equatorial Guinea and commercial and terminalling operations in the U.K. As of March 31, 2026, our Europe, Middle East and North Africa operations contributed eight percent of our consolidated liquids production and 19 percent of our consolidated natural gas production.

Net Income (Loss)

Europe, Middle East and North Africa reported earnings of $265 million in the first quarter of 2026, compared with earnings of $419 million in the first quarter of 2025.

Earnings in the first quarter of 2026 included lower revenues inclusive of lower volumes of $32 million and lower realized prices of $10 million primarily from lower gas prices, partly offset by higher crude prices. Additional decreases to earnings included lower earnings from equity affiliates of $21 million, primarily driven by lower prices and volumes and tax impacts of $60 million due to a shift in our mix of income among taxing jurisdictions.

Consolidated Production

Average consolidated production decreased 19 MBOED in the three-month period of 2026. Decreases to production were due to normal field decline and higher downtime in Libya and Norway.

Production decreases were partly offset by new wells online in Libya and improved performance in Equatorial Guinea and Norway.

Qatar

We have investments in LNG facilities in Qatar, including one producing asset and two projects under construction. In March 2026, due to the conflict in the Middle East, QatarEnergy constrained LNG production at its major Ras Laffan facilities. Our investments have not been damaged, and there are no indications of impairment. However, further escalation could adversely affect operations, LNG transportation and construction and have broader supply chain impacts. The company continues to monitor developments and prioritize the safety of personnel and the integrity of our operations. See Note 3.

			ConocoPhillips 2026 Q1 10-Q			36

Results of Operations			Table of Contents

Asia Pacific

			Three Months Ended March 31
			2026			2025
Select financial data by segment before-tax ($MM)
Sales and other operating revenues			$	501		424
Production and operating expenses			80			65
Depreciation, depletion and amortization			103			119
Taxes other than income taxes			24			17
Net income (loss) ($MM)			$	295		311
Consolidated Operations
Average Net Production
Crude oil (MBD)			56			63
Natural gas (MMCFD)			74			65
Total Production (MBOED)			69			74
Total Production (MMBOE)			6			7
Average Sales Prices
Crude oil ($ per BBL)			$	81.14		76.64
Natural gas ($ per MCF)			3.34			3.67

Production and sales prices exclude equity affiliates. See Summary Operating Statistics for equity affiliate totals.

The Asia Pacific segment has operations in China, Malaysia, Australia and commercial operations in China, Singapore and Japan. As of March 31, 2026, Asia Pacific contributed three percent of our consolidated liquids production and three percent of our consolidated natural gas production.

Net Income (Loss)

Asia Pacific reported earnings of $295 million in the first quarter of 2026, compared with earnings of $311 million in the first quarter of 2025.

Earnings in the first quarter of 2026 included lower earnings from equity affiliates of $35 million, primarily due to lower LNG marker prices. Increases to earnings included lower exploration expenses of $31 million, primarily driven by the absence of dry hole expenses associated with certain suspended wells.

Consolidated Production

Average consolidated production decreased five MBOED in the three-month period of 2026. Decreases to production were primarily due to normal field decline.

Production decreases were partly offset by development activity in Bohai Bay in China.

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Corporate and Other

			Millions of Dollars
			Three Months Ended March 31
			2026			2025
Net income (loss)
Net interest expense			$	(78)		(111)
Corporate G&A expenses			(97)			(110)
Technology			(7)			(18)
Other income (expense)			23			(15)
			$	(159)		(254)

Net interest expense consists of interest and debt expense, net of interest income and capitalized interest. Net interest expense decreased in the three-month period of 2026 due to higher interest income and higher capitalized interest partly offset by the absence of an impact from the settlement of a contingent matter.

Corporate G&A expenses include compensation programs and staff costs. Corporate G&A expenses decreased in the three-month period of 2026, primarily due to the absence of transaction and integration expenses associated with our acquisition of Marathon Oil.

Technology includes our investments in low-carbon and other new technologies or businesses and licensing revenues. Other new technologies or businesses and licensing activities are focused on both conventional and tight oil reservoirs, shale gas, oil sands, enhanced oil recovery, as well as LNG.

Other income (expense) or "Other" includes certain foreign currency transaction gains and losses, environmental costs associated with sites no longer in operation, other costs not directly associated with an operating segment, gains or losses on early retirement of debt, holding gains or losses on equity securities and pension settlement expense. "Other" was improved in the first quarter of 2026 primarily due to a consolidating tax adjustment.

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Capital Resources and Liquidity			Table of Contents

Capital Resources and Liquidity

Financial Indicators

			Millions of Dollars
			March 31 2026			December 31 2025
Cash and cash equivalents			$	5,877		6,497
Short-term investments			486			484
Short-term debt			1,065			1,020
Total debt			23,327			23,444
Total equity			64,541			64,487
Percent of total debt to capital*			27		%	27
Percent of floating-rate debt to total debt			1		%	1

*Capital includes total debt and total equity.

To meet our short-term and long-term liquidity requirements, we look to a variety of funding sources, including cash generated from operating activities, our commercial paper and credit facility programs and our ability to sell securities using our shelf registration statement. During the first three months of 2026, the primary uses of our available cash were $2.9 billion to support our ongoing capital expenditures and investments program, $1.0 billion to repurchase common stock, $1.0 billion to pay the ordinary dividend and $0.1 billion to retire debt.

At March 31, 2026, we had total liquidity of $11.9 billion, comprised of cash and cash equivalents of $5.9 billion, short-term investments of $0.5 billion and available borrowing capacity under our credit facility of $5.5 billion. In addition, we have $1.2 billion of long-term investments in debt securities. We believe current cash balances and cash generated by operating activities, together with access to external sources of funds as described below in the “Significant Changes in Capital” section, will be sufficient to meet our funding requirements in the near- and long-term, including our capital spending program, capital return program and required debt payments.

Significant Changes in Capital

Operating Activities

Cash provided by operating activities totaled $4.3 billion for the first three months of 2026 compared with $6.1 billion for the corresponding period of 2025. The decrease resulted from receivable timing, lower production and lower realized commodity prices.

Our short-term and long-term operating cash flows are highly dependent on the prices for crude oil, bitumen, natural gas, LNG and NGLs. Prices and margins in our industry have historically been volatile, driven by market conditions beyond our control. Absent other mitigating factors, as these prices and margins fluctuate, we would expect a corresponding change in our operating cash flows.

The level of absolute production volumes, as well as the product and location mix, is another significant factor impacting our cash flows. Future production is subject to numerous uncertainties, including, among others, the volatile crude oil and natural gas price environment, which may impact investment decisions; the effects of price changes on production sharing and variable-royalty contracts; acquisition and disposition of fields; field production decline rates; new technologies; operating efficiencies; timing of startups and major turnarounds; political instability; government regulations; weather-related disruptions; and the addition of proved reserves through exploratory success and their timely and cost-effective development. While we actively monitor and manage these factors, changes in production levels can cause variability in cash flows, although we generally experience less variability in our cash flows due to changes in production levels than due to changes in commodity prices.

To maintain or grow our production volumes, we must continue adding to our proved reserve base. See the “Capital Expenditures and Investments” section.

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Investing Activities

For the first three months of 2026, we invested $2.9 billion in capital expenditures and investments. See the “Capital Expenditures and Investments” section.

Proceeds from asset sales were immaterial in the first three months of 2026. In the first three months of 2025, proceeds from asset sales were $0.6 billion, primarily from the sale of assets in our Lower 48 segment.

We invest in short-term and long-term investments as part of our cash investment strategy, the primary objective of which is to protect principal, maintain liquidity and provide yield and total returns. These investments include time deposits, commercial paper, as well as debt securities classified as available for sale. Short-term funds needed to support our operating plan and provide resiliency to react to short-term price volatility are invested in highly liquid instruments with maturities of less than one year. Funds we consider available to maintain resiliency in longer-term price downturns and to capture opportunities outside a given operating plan may be invested in instruments with maturities of greater than one year. See Note 7.

Investing activities in the first three months of 2026 included net purchases of $30 million of investments. We had net sales of $155 million of short-term investments and net purchases of $185 million of long-term investments*.* See Note 11.

Financing Activities

In the first quarter of 2026, the company retired $67 million principal amount of our 6.875% Notes at maturity.

We have a revolving credit facility totaling $5.5 billion with a maturity date of February 2030. The credit facility may be used for direct bank borrowings, the issuance of letters of credit totaling up to $500 million or as support for our commercial paper program. With no commercial paper outstanding and no direct borrowings or letters of credit, we had access to $5.5 billion in available borrowing capacity under our revolving credit facility at March 31, 2026.

Our debt balance at March 31, 2026, was $23.3 billion compared with $23.4 billion at December 31, 2025. The current portion of debt, including future payments for finance leases, is $1.1 billion at March 31, 2026. Debt payments are expected to be made using current cash balances and cash provided by operating activities.

Fitch and Moody's affirmed our long-term debt credit ratings in February and April 2026, respectively. The current long-term debt credit ratings are:

• Fitch: “A” with a “stable” outlook

• S&P: “A-” with a “stable” outlook

• Moody's: “A2” with a “stable” outlook

See Note 4 for additional information on debt.

Certain of our project-related contracts, commercial contracts and derivative instruments contain provisions requiring us to post collateral. Many of these contracts and instruments permit us to post either cash or letters of credit as collateral. At March 31, 2026, and December 31, 2025, we had direct bank letters of credit of $391 million and $331 million, respectively, which secured performance obligations related to various purchase commitments incident to the ordinary conduct of business. In the event of a credit rating downgrade, we may be required to post additional letters of credit.

Shelf Registration

We have a universal shelf registration statement on file with the SEC under which we have the ability to issue and sell an indeterminate number of various types of debt and equity securities.

Capital Requirements

For information about our capital expenditures and investments, see the “Capital Expenditures and Investments” section.

We believe in delivering value to our shareholders through our return of capital framework. The framework is structured to deliver a compelling, growing ordinary dividend and through-cycle share repurchases. We anticipate returning greater than 30 percent of cash from operating activities through cycles.

In the first three months of 2026, we paid ordinary dividends of $0.84 per share, and in the first three months of 2025, we paid ordinary dividends of $0.78 per share.

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In April 2026, we declared an ordinary dividend of $0.84 per share, payable June 1, 2026, to shareholders of record on May 11, 2026.

In late 2016, we initiated our current share repurchase program. In October 2024, our Board of Directors approved an increase from our prior authorization of $45 billion by a total of the lesser of $20 billion or the number of shares issued in our acquisition of Marathon Oil, such that the company is not to exceed $65 billion in aggregate purchases. Share repurchases are made at management’s discretion, at prevailing prices, subject to market conditions and other factors. As of March 31, 2026, share repurchases since the inception of our current program totaled 495.3 million shares and $40.3 billion. In the three months ended March 31, 2026, we repurchased 9.2 million shares for a cost of $1.0 billion.

Capital Expenditures and Investments

			Millions of Dollars
			Three Months Ended March 31
			2026			2025
Alaska			$	949		1,046
Lower 48			1,505			1,814
Canada			121			165
Europe, Middle East and North Africa			262			274
Asia Pacific			82			54
Segment Totals			2,919			3,353
Corporate and Other			29			25
Capital expenditures and investments			$	2,948		3,378

During the first three months of 2026, capital expenditures and investments supported key operating activities and acquisitions, primarily:

• Appraisal and development activities in Alaska related to the Western North Slope, inclusive of Willow, development activities in the Greater Kuparuk Area and exploration in the NPR-A.

• Development activities in the Lower 48, primarily in the Delaware Basin, Eagle Ford, Midland Basin and Bakken.

• Appraisal and development activities in the Montney as well as development and optimization of Surmont in Canada.

• Development and appraisal activities across assets in Norway and development activities in Libya.

• Continued development activities in China.

• Investments in our global LNG operations.

Our 2026 operating plan capital expenditure guidance is currently expected to be approximately $12 to $12.5 billion. Our capital expenditures and investments were $12.6 billion in 2025.

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Guarantor Summarized Financial Information

We have various cross guarantees among our Obligor Group: ConocoPhillips, ConocoPhillips Company and Burlington Resources LLC, with respect to publicly held debt securities. ConocoPhillips Company is 100 percent owned by ConocoPhillips. Burlington Resources LLC is 100 percent owned by ConocoPhillips Company. ConocoPhillips and/or ConocoPhillips Company have fully and unconditionally guaranteed the payment obligations of Burlington Resources LLC, with respect to its publicly held debt securities. Similarly, ConocoPhillips has fully and unconditionally guaranteed the payment obligations of ConocoPhillips Company with respect to its publicly held debt securities. In addition, ConocoPhillips Company has fully and unconditionally guaranteed the payment obligations of ConocoPhillips with respect to its publicly held debt securities. All guarantees are joint and several.

The following tables present summarized financial information for the Obligor Group, as defined below:

• The Obligor Group will reflect guarantors and issuers of guaranteed securities consisting of ConocoPhillips, ConocoPhillips Company and Burlington Resources LLC.

• Consolidating adjustments for elimination of investments in and transactions between the collective guarantors and issuers of guaranteed securities are reflected in the balances of the summarized financial information.

• Non-Obligated Subsidiaries are excluded from the presentation.

Transactions and balances reflecting activity between the Obligors and Non-Obligated Subsidiaries are presented below:

Summarized Income Statement Data

			Millions of Dollars
			Three Months Ended March 31, 2026
Revenues and Other Income			$	11,181
Income (loss) before income taxes*			2,050
Net income (loss)			2,183

*Includes approximately $3.9 billion of purchased commodities expense for transactions with Non-Obligated Subsidiaries.

Summarized Balance Sheet Data

			Millions of Dollars
			March 31 2026			December 31 2025
Current Assets			$	8,091		8,206
Amounts due from Non-Obligated Subsidiaries, current			930			855
Noncurrent Assets			130,651			130,320
Amounts due from Non-Obligated Subsidiaries, noncurrent			10,647			11,231
Current Liabilities			4,874			4,947
Amounts due to Non-Obligated Subsidiaries, current			1,350			1,244
Noncurrent Liabilities			75,060			74,824
Amounts due to Non-Obligated Subsidiaries, noncurrent			53,008			52,813

Contingencies

We are subject to legal proceedings, claims and liabilities that arise in the ordinary course of business, including environmental obligations and climate-related risks. See Note 6. For more discussion, please see the "Contingencies" section in Management's Discussion and Analysis of Financial Condition and Results of Operations of our 2025 Annual Report on Form 10-K.

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Cautionary Statement for the Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995

This report includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included or incorporated by reference in this report, including, without limitation, statements regarding our future financial position, business strategy, budgets, projected revenues, costs and plans, objectives of management for future operations, are forward-looking statements. Examples of forward-looking statements contained in this report include our expected production growth and outlook on the business environment generally, our expected capital budget and capital expenditures and discussions concerning development or replacement of reserves and future dividends. You can often identify our forward-looking statements by the words “ambition,” “anticipate,” “believe,” “budget,” “continue,” “could,” “effort,” “estimate,” “expect,” “forecast,” “goal,” “guidance,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “predict,” “projection,” “seek,” “should,” “target,” “will,” “would” and similar expressions.

We based our forward-looking statements on our current expectations, estimates and projections about ourselves and the industries in which we operate in general. We caution you these statements are not guarantees of future performance as they involve assumptions that, while made in good faith, may prove to be incorrect or inaccurate, and involve risks and uncertainties we cannot predict. Accordingly, our actual outcomes and results may differ materially from what we have expressed or forecast in the forward-looking statements. Any differences could result from a variety of factors and uncertainties, including, but not limited to, the following:

• Effects of volatile commodity prices, including prolonged periods of low commodity prices, which may adversely impact our operating results and our ability to execute on our strategy and could result in recognition of impairment charges on our long-lived assets, leaseholds and nonconsolidated equity investments.

• Global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas, including changes as a result of any ongoing military conflict and the global response to such conflict; geopolitical tensions; security threats on facilities and infrastructure; global health crises; the imposition or lifting of crude oil production quotas or other actions that might be imposed by OPEC and other producing countries; or the resulting company or third-party actions in response to such changes.

• The potential for insufficient liquidity or other factors, such as those described herein, that could impact our ability to repurchase shares and declare and pay dividends.

• Potential failures or delays in achieving expected reserve or production levels from existing and future oil and gas developments, including due to operating hazards, drilling risks and the inherent uncertainties in predicting reserves and reservoir performance.

• Reductions in our reserve replacement rates, whether as a result of significant declines in commodity prices or otherwise.

• Unsuccessful exploratory drilling activities or the inability to obtain access to exploratory acreage.

• Failure to progress or complete announced and future development plans related to constructing, modifying or operating E&P and LNG facilities, or unexpected changes in costs, inflationary pressures or technical equipment related to such plans.

• Significant operational or investment changes imposed by legislative and regulatory initiatives and international agreements addressing environmental concerns, including initiatives addressing the impact of global climate change, such as limiting or reducing GHG emissions; regulations concerning hydraulic fracturing, methane emissions, flaring or water disposal; and prohibitions on commodity exports.

• Broader societal attention to and efforts to address climate change may cause substantial investment in and increased adoption of competing or alternative energy sources.

• Risks, uncertainties and high costs that may prevent us from successfully executing on our Climate-related Risk Strategy.

• Lack or inadequacy of, or disruptions in, reliable transportation for our crude oil, bitumen, natural gas, LNG and NGLs.

• Inability to timely obtain or maintain permits, including those necessary for construction, drilling and/or development, or inability to make capital expenditures required to maintain compliance with any necessary permits or applicable laws or regulations.

• Potential disruption or interruption of our operations and any resulting consequences due to accidents; extraordinary weather events; supply chain disruptions; civil unrest; political events; war; terrorism; cybersecurity threats or information technology failures, constraints or disruptions.

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• Liability for remedial actions, including removal and reclamation obligations, under existing or future environmental regulations and litigation.

• Liability resulting from pending or future litigation or our failure to comply with applicable laws and regulations.

• General domestic and international economic, political and diplomatic developments, including deterioration of international trade relationships; the imposition of trade restrictions or tariffs relating to commodities and material or products (such as aluminum and steel) used in the operation of our business; expropriation of assets; changes in governmental policies relating to commodity pricing, including the imposition of price caps; sanctions; or other adverse regulations or taxation policies.

• Competition and consolidation in the oil and gas E&P industry, including competition for sources of supply, services, personnel and equipment.

• Any limitations on our access to capital or increase in our cost of capital or insurance, including as a result of illiquidity, changes or uncertainty in domestic or international financial markets, foreign currency exchange rate fluctuations or investment sentiment.

• Challenges or delays to our execution of, or successful implementation of any future asset dispositions or acquisitions we elect to pursue; potential disruption of our operations, including the diversion of management time and attention; our inability to realize anticipated cost savings or capital expenditure reductions; difficulties integrating acquired businesses and technologies; or other unanticipated changes.

• Our inability to deploy the net proceeds from any asset dispositions that are pending or that we elect to undertake in the future in the manner and timeframe we anticipate, if at all.

• The operation, financing and management of risks of our joint ventures.

• The ability of our customers and other contractual counterparties to satisfy their obligations to us, including our ability to collect payments when due from the government of Venezuela or Petróleos de Venezuela, S.A.

• Uncertainty as to the long-term value of our common stock.

• The factors generally described in Part I—Item 1A in our 2025 Annual Report on Form 10-K and any additional risks described in our other filings with the SEC.