ConocoPhillips Q1 Bakken Output Steady Amid Lower Earnings
The major Bakken operator reported 183,000 boed from the play while announcing plans to return 45% of operating cash flow to shareholders this year.
ConocoPhillips reported first-quarter adjusted net income of $2.3 billion, beating analyst estimates despite a year-over-year decline in profit, according to its quarterly report. The company's Bakken formation assets contributed 183,000 barrels of oil equivalent per day (boed) to its total Lower 48 output of 1.45 million boed for the quarter.
Overall company production averaged 2.31 million boed for Q1 2026, down 80,000 boed from the same period last year. The company noted that after adjusting for acquisitions and dispositions, production decreased by only 14,000 boed, or 1 percent, year-over-year. "Organic growth from Lower 48 was more than offset by downtime, which includes the impact of the Middle East conflict on Qatar, and higher Surmont royalties," the company stated.
For Bakken operators and mineral owners, the financial discipline of a top producer like ConocoPhillips is a key indicator. The company reiterated its objective to return 45 percent of its cash from operations to shareholders this year. In the first quarter, it distributed $2 billion to shareholders, including $1 billion in share repurchases, and declared a quarterly dividend of $0.84 per share for Q2.
Chair and CEO Ryan Lance said, "Amid ongoing macro volatility, ConocoPhillips delivered another quarter of strong financial and operational performance. We remain focused on delivering our value proposition: operating safely; maximizing our returns on and of capital... and driving peer-leading free cash flow growth."
The company's realized price averaged $50.36 per barrel of oil equivalent, down 6 percent from Q1 2025. Cash from operations was $5.4 billion when excluding working capital changes.
Looking ahead, ConocoPhillips provided full-year production guidance of 2.3-2.33 million boed. Capital spending for 2026 is expected to be between $12 billion and $12.5 billion, "including incremental Permian activity," according to the report. The guidance reflects uncertainty in the macro environment.
Global Gas Demand in Focus In separate news, German energy company Uniper SE received preliminary approval for a new hydrogen-ready natural gas power plant, Rigzone reported. The project highlights continued European demand for flexible, dispatchable natural gas generation, which can support long-term demand for associated gas produced in the Bakken.
Uniper's planned 890-megawatt plant is designed to be compatible with hydrogen in the future. The company targets investing about €8 billion in its energy transition by the early 2030s. For Bakken producers, such infrastructure investments in key export markets underscore the evolving, long-term role for natural gas in the global energy mix.
Source
Quarterly report data and executive statements from ConocoPhillips via Rigzone; Uniper project approval report via Rigzone.
