COP · 10-Q · 2026Q3 · Full report

Operating Expense Trends

CONOCOPHILLIPS · 2026-11-05 · Importance 24 · Surprise 6 · In source text

Production and operating expenses declined $192 million in the third quarter and $563 million over nine months, primarily because of increased efficiencies. Purchased commodities expense increased $1.566 billion in the quarter, primarily due to higher crude and gas prices and volumes, and rose $3.288 billion over nine months. Depreciation, depletion and amortization increased $88 million in the quarter and $393 million over nine months, primarily because of higher DD&A rates following finalized Marathon Oil purchase-price allocations and lower proved developed reserves. Lower 48 production and operating expenses fell $420 million over nine months, primarily driven by efficiencies.

Key facts

• ConocoPhillips' purchased commodities increased $1,566 million in the third quarter and $3,288 million in the first nine months of 2026; the increases primarily reflected higher crude and gas prices and volumes in the quarter, and higher crude prices and volumes and gas volumes over nine months, partly offset by lower gas prices. source
• ConocoPhillips' production and operating expenses decreased $192 million in the third quarter and $563 million in the first nine months of 2026, primarily due to increased efficiencies. source
• Corporate G&A expenses decreased in the three- and nine-month periods ended September 30, 2026, primarily because transaction and integration expenses associated with the Marathon Oil acquisition were absent. source
• ConocoPhillips' DD&A increased $88 million in the third quarter and $393 million in the first nine months of 2026, primarily due to higher DD&A rates associated with finalized Marathon Oil purchase-price allocations and lower proved developed reserves at December 31, 2025. source
• CONOCOPHILLIPS was subject to legal proceedings, claims, and liabilities arising in the ordinary course of business, including environmental obligations and climate-related risks. source
• Surmont royalties are based on a sliding scale from 25 percent to 40 percent of gross revenue, net of allowable post-payout deductions, and indexed to WTI prices between C$55 and C$120. source

Impact estimates