Investing.com -- ConocoPhillips on Thursday reported first-quarter 2026 adjusted earnings per share of $1.89, beating analyst estimates of $1.66, though shares fell over 2% in pre-market trade as the company cut its full-year production outlook citing the ongoing Middle East conflict’s impact on Qatar operations.

The Houston-based oil and gas producer posted net earnings of $2.2 billion, or $1.78 per share, down from $2.8 billion, or $2.23 per share, in the first quarter of 2025. Adjusted earnings were $2.3 billion, compared with $2.7 billion a year earlier. The company’s total average realized price fell 6% to $50.36 per barrel of oil equivalent, from $53.34 in the same period last year.

Special items for the quarter primarily related to pending claims and settlements and a loss on a contingent liability measurement.

Total company production was 2,309 thousand barrels of oil equivalent per day, down 80 thousand barrels from a year ago.

Adjusted for closed acquisitions and dispositions, production fell 14 thousand barrels per day, or 1%, with organic growth from the Lower 48 more than offset by downtime and higher Surmont royalties.

Lower 48 production reached 1,453 thousand barrels per day, with the Delaware Basin contributing 698 thousand barrels, Eagle Ford 367 thousand barrels, Midland Basin 200 thousand barrels and the Bakken 183 thousand barrels.

Cash provided by operating activities was $4.3 billion. Excluding a $1.1 billion change in operating working capital, cash from operations was $5.4 billion. Capital expenditures and investments totalled $2.9 billion. The company repurchased $1.0 billion of shares, paid $1.0 billion in ordinary dividends and retired $0.1 billion of debt at maturity.

ConocoPhillips ended the quarter with $6.7 billion in cash and short-term investments and $1.2 billion in long-term investments.

"Amid ongoing macro volatility, ConocoPhillips delivered another quarter of strong financial and operational performance," Chairman and Chief Executive Ryan Lance said, reiterating an objective to return 45% of cash from operations to shareholders in 2026.

The company declared a second-quarter ordinary dividend of $0.84 per share, payable June 1, 2026, to stockholders of record as of May 11, 2026, representing an annualised $3.36 per share and a yield of 2.6%.

ConocoPhillips excluded Qatar from second-quarter production guidance, citing conflict uncertainty, and set that quarter’s output at 2.185 to 2.215 million barrels per day.

Full-year production guidance was set at 2.295 to 2.325 million barrels per day, reflecting a 20 thousand barrel annual adjustment for Qatar and a 15 thousand barrel royalty rate adjustment at Surmont.

Full-year capital spending guidance was set at $12.0 to $12.5 billion, including incremental Permian activity.