COP · Earnings call · 2026Q3T · Full report

Operating Expense Trends

CONOCOPHILLIPS · 2026-11-05 · Importance 43 · Surprise 32

Management said structural cost reductions are fully offsetting inflation in adjusted operating costs in the higher commodity-price environment. The company expects per-unit operating costs to decline again in 2027 as sustainable cost reductions and efficiency improvements offset inflation. Management reported low-single-digit aggregate inflation, despite double-digit increases in some consumables such as fuel, logistics and chemicals. It said development, drilling and completion efficiencies, along with operational improvements, more than offset those cost pressures.

Key facts

• CONOCOPHILLIPS expected per-unit operating costs to trend lower again in 2027 as sustainable cost reductions and efficiency improvements offset inflation.
• CONOCOPHILLIPS expected another year of lower unit operating costs in 2027 despite inflation associated with higher commodity prices.
• CONOCOPHILLIPS said structural cost reductions fully offset inflation in a higher commodity-price environment in its adjusted operating costs.