NEW YORK, Feb 5, 2026, 15:28 EST — Regular session
- COP down about 2.4% after ConocoPhillips missed fourth-quarter profit estimates and flagged 2026 cost cuts
- Company sticks with plan to return 45% of cash from operations to shareholders in 2026
- Oil prices fall ahead of Friday U.S.-Iran talks, adding pressure to upstream producers
ConocoPhillips (COP) shares fell on Thursday after the oil and gas producer missed fourth-quarter profit estimates and laid out a $1 billion cost-cut target for 2026. The stock was down 2.4% at $105.04 in mid-afternoon New York trade, after ranging between $103.18 and $108.29.
The pullback puts a spotlight back on spending discipline, after months of investor pressure on producers to defend buybacks and dividends as crude prices soften. For ConocoPhillips, the market is reading the same question into everything: how much room is left if prices stay lower for longer.
Oil markets were not helping. Brent and U.S. West Texas Intermediate were down around 2% after the U.S. and Iran agreed to hold talks in Oman on Friday, easing supply worries and turning the tape choppy. “There is still scepticism that any reasonable deal can be made with Iran,” said Phil Flynn, senior analyst at Price Futures Group, while Aegis Hedging analysts pointed to rising uncertainty and volatility around expectations for the talks. Reuters
ConocoPhillips said it aims to cut capital and operating costs by $1 billion in 2026 after posting adjusted profit of $1.02 per share for the quarter ended Dec. 31, below the $1.11 average analyst estimate compiled by LSEG. Average realized prices fell 19% to $42.46 per barrel of oil equivalent, while production rose 6.3% to 2.320 million barrels of oil equivalent per day (boepd), and the company forecast 2026 output of 2.33 million to 2.36 million boepd. “We’re focused on driving a $1 billion reduction in capital and costs in 2026,” CEO Ryan Lance said; RBC Capital Markets analyst Scott Hanold said investors remain fixated on the timing of a free-cash-flow inflection and how cash will be used for shareholder returns. Reuters
In its quarterly update, ConocoPhillips put 2026 capital spending at about $12 billion and guided for full-year adjusted operating costs of $10.2 billion. It reiterated plans to return 45% of cash from operations (CFO), a measure of operating cash flow, to shareholders in 2026 and declared an ordinary dividend of $0.84 per share payable March 2 to shareholders of record on Feb. 18. The company said it returned $9.0 billion in 2025, including $5.0 billion in share repurchases, and closed $3.2 billion in dispositions as it works toward a $5 billion target by end-2026.
The stock had closed at $107.59 on Wednesday, up 2.55% and marking a new 52-week high, even as it lagged some peers on the day. Exxon rose 2.69% and Chevron gained 1.79% in that session, MarketWatch data showed.
