COP · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

CONOCOPHILLIPS · 2026-11-05 · Importance 30 · Surprise 40

The effective tax rate for the third quarter of 2026 was 33.1%, down from 41.0% a year earlier; the nine-month rate was 34.4%, compared with 37.1% in 2025. The company attributed the changes primarily to shifts in the mix of income among taxing jurisdictions and the release of unrecognized tax benefits in the current quarter. EMENA third-quarter earnings included a $109 million adverse tax impact from the jurisdictional income mix, and its nine-month earnings included a $218 million adverse tax impact. The filing also reported a prior-year valuation-allowance decrease related to expected use of capital-loss carryforwards following the agreed sale of the Ursa and Europa fields and related pipeline interests.

Key facts

• ConocoPhillips' effective tax rate was 33.1 percent in the third quarter of 2026, compared with 41.0 percent in the third quarter of 2025. source
• ConocoPhillips' third-quarter 2026 effective tax rate change primarily reflected a shift in income mix among taxing jurisdictions and release of unrecognized tax benefits. source
• ConocoPhillips' effective tax rate was 34.4 percent in the first nine months of 2026, compared with 37.1 percent in the corresponding 2025 period. source
• ConocoPhillips' nine-month effective tax rate change primarily reflected income mix shifts and release of unrecognized benefits, partly offset by a prior-year valuation allowance change. source
• Earnings in Other increased in third-quarter 2026 primarily due to a consolidating tax adjustment and release of unrecognized tax benefits in the current quarter. source