COP · 10-Q · 2026Q2 · Full report

Operating Expense Trends

CONOCOPHILLIPS · 2026-08-06 · Importance 64 · Surprise 56 · In source text

Quarterly purchased commodities expense increased $1.627 billion, or 32%, to $6.712 billion, primarily because of higher crude prices partly offset by lower gas prices. Production and operating expenses declined $141 million, or 5%, to $2.431 billion in the quarter and declined $371 million, or 7%, to $4.707 billion for the first six months, primarily because of operating efficiencies. Depreciation, depletion and amortization increased $145 million, or 5%, quarterly and $305 million, or 5%, year to date. Higher DD&A reflected higher rates from increased net book values after finalizing Marathon Oil purchase-price allocations and lower proved developed reserves.

Key facts

• Purchased commodities increased by $1,627 million for the three months ended June 30, 2026, and $1,722 million for the six months ended June 30, 2026, primarily due to higher crude prices partly offset by lower gas prices. source
• DD&A increased $145 million for the three months and $305 million for the six months ended June 30, 2026, primarily due to higher DD&A rates from finalized Marathon Oil purchase price allocations and lower proved developed reserves as of December 31, 2025. source
• Corporate G&A expenses decreased in the three- and six-month periods ended June 30, 2026, primarily due to the absence of transaction and integration expenses associated with our acquisition of Marathon Oil. source
• Production and operating expenses decreased $141 million for the three months and $371 million for the six months ended June 30, 2026, primarily due to increased efficiencies. source
• We recognized a proportionate share of prior actuarial losses from other comprehensive income as pension settlement expense of $ million and $ million for the three- and six-month periods ended June 30, 2026, respectively (amounts redacted in excerpt). source

Impact estimates