Financial Analysis

Note 9Contingencies and Commitments A number of lawsuits involving a variety of claims arising in the ordinary course of business have been filed against ConocoPhillips. We also may be required to remove or mitigate the effects on the environment of the placement, storage, disposal or release of certain chemical, mineral and petroleum substances at various active and inactive sites. We regularly assess the need for accounting recognition or disclosure of these contingencies. In the case of all known contingencies (other than those related to income taxes), we accrue a liability when the loss is probable and the amount is reasonably estimable. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the low end of the range is accrued. We do not reduce these liabilities for potential insurance or third-party recoveries. We accrue receivables for insurance or other third-party recoveries when applicable. With respect to income tax-related contingencies, we use a cumulative probability-weighted loss accrual in cases where sustaining a tax position is less than certain. See Note 15 , for additional information about income tax-related contingencies. Based on currently available information, we believe it is remote that future costs related to known contingent liability exposures will exceed current accruals by an amount that would have a material adverse impact on our consolidated financial statements. As we …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Note 7Debt Long-term debt at December 31 was: Millions of Dollars 2025 2024 2.4% Notes due 2025 366 8.2% Debentures due 2025 134 3.35% Notes due 2025 199 6.875% Debentures due 2026 67 67 7.8% Debentures due 2027 120 120 4.4% Notes due 2027 422 424 3.75% Notes due 2027 196 196 4.3% Notes due 2028 223 223 7.375% Debentures due 2029 66 66 7.0% Debentures due 2029 95 95 5.3% Notes due 2029 84 86 6.95% Notes due 2029 705 705 4.7% Notes due 2030 1,350 1,350 8.125% Notes due 2030 207 207 2.4% Notes due 2031 227 227 7.2% Notes due 2031 447 447 7.25% Notes due 2031 268 268 7.4% Notes due 2031 232 232 4.85% Notes due 2032 650 650 6.8% Notes due 2032 180 180 5.9% Notes due 2032 505 505 5.05% Notes due 2033 1,000 1,000 5.7% Notes due 2034 103 103 4.15% Notes due 2034 246 246 5.0% Notes due 2035 1,250 1,250 5.95% Notes due 2036 326 326 5.951% Notes serially maturing 2022 through 2037 541 573 6.6% Notes due 2037 335 335 5.9% Notes due 2038 350 350 6.5% Notes due 2039 1,588 1,588 3.758% Notes due 2042 785 785 4.3% Notes due 2044 750 750 5.2% Notes due 2045 186 186 5.95% Notes due 2046 329 329 7.9% Debentures due 2047 60 60 4.875% Notes due 2047 319 319 4.85% Notes due 2048 219 219 3.8% Notes due 2052 1,100 1,100 5.3% Notes due 2053 1,100 1,100 5.55% Notes due 2054 1,000 1,000 5.5% Notes due 2055 1,300 1,300 4.025% Notes due 2062 1,770 1,770 5.7% Notes due 2063 700 700 5.65% Notes due 2065 650 650 Marine Terminal Revenue Refunding Bonds due 2031 at 1.23% 5.05% during 2025 and 1.78% 4.80% du …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Revenue from Contracts with Customers The following table provides further disaggregation of our consolidated sales and other operating revenues: Millions of Dollars 2025 2024 2023 Revenue from contracts with customers $ 51,824 49,418 48,522 Revenue from contracts outside the scope of ASC Topic 606 Physical contracts meeting the definition of a derivative 7,201 5,483 8,203 Financial derivative contracts (81) (156) (584) Consolidated sales and other operating revenues $ 58,944 54,745 56,141 Revenues from contracts outside the scope of ASC Topic 606, Revenue from Contracts with Customers, relate primarily to physical gas contracts at market prices, which qualify as derivatives accounted for under ASC Topic 815, Derivatives and Hedging, and for which we have not elected NPNS. There is no significant difference in contractual terms or the policy for recognition of revenue from these contracts and those within the scope of ASC Topic 606. Further disaggregation of revenues is provided in Note 22 - Segment Disclosures and Related Information . …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"Note 11Fair Value Measurement We carry a portion of our assets and liabilities at fair value that are measured at the reporting date using an exit price (i.e., the price that would be received to sell an asset or paid to transfer a liability) and disclosed according to the quality of valuation inputs under the fair value hierarchy. The classification of an asset or liability is based on the lowest level of input significant to its fair value. Those that are initially classified as Level 3 are subsequently reported as Level 2 when the fair value derived from unobservable inputs is inconsequential to the overall fair value, or if corroborated market data becomes available. Assets and liabilities initially reported as Level 2 are subsequently reported as Level 3 if corroborated market data is no longer available. There were no material transfers into or out of Level 3 during 2025 or 2024. Recurring Fair Value Measurement Financial assets and liabilities reported at fair value on a recurring basis include our investments in debt securities classified as available for sale, commodity derivatives, and our contingent consideration arrangement related to the Surmont acquisition. See Note 3 . Level 1 derivative assets and liabilities primarily represent exchange-traded futures and options that are valued using unadjusted prices available from the underlying exchange. Level 1 financial assets also include our investments in U.S. government obligations classified as available for sale …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Note 15Income Taxes Components of income tax provision (benefit) were: Millions of Dollars 2025 2024 2023 Income Taxes Federal Current $ 655 629 1,054 Deferred 537 247 825 Foreign Current 3,287 3,249 2,931 Deferred 33 71 254 State and local Current 177 182 202 Deferred (21) 49 65 Total tax provision (benefit) $ 4,668 4,427 5,331 Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. Major components of deferred tax liabilities and assets at December 31 were: Millions of Dollars 2025 2024 Deferred Tax Liabilities PP&E and intangibles $ 16,244 15,609 Inventory 15 91 Other 160 155 Total deferred tax liabilities 16,419 15,855 Deferred Tax Assets Benefit plan accruals 330 432 Asset retirement obligations and accrued environmental costs 2,985 2,799 Investments in joint ventures 2,356 2,269 Other financial accruals and deferrals 507 497 Loss and credit carryforwards 4,048 4,910 Other 103 187 Total deferred tax assets 10,329 11,094 Less: valuation allowance (5,926) (6,435) Total deferred tax assets net of valuation allowance 4,403 4,659 Net deferred tax liabilities $ 12,016 11,196 At December 31, 2025, noncurrent assets and liabilities included deferred taxes of $221 million and $12,237 million, respectively. At December 31, 2024, noncurrent assets and liabilities included deferred taxes of $230 million and $11,426 million, respectivel …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses to improve the disclosures about a public business entitys expenses (including purchases of inventory, employee compensation, depreciation, depletion and amortization) in commonly presented expense captions. The ASU will impact our financial statement disclosures only and will be applied prospectively with retrospective application permitted. The ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, and early adoption is permitted. We are currently evaluating the impact of the adoption of this ASU. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 14Employee Benefit Plans Pension and Postretirement Plans An analysis of the projected benefit obligations for our pension plans and accumulated benefit obligations for our postretirement health and life insurance plans follows: Millions of Dollars Pension Benefits Other Benefits 2025 2024 2025 2024 U.S. Intl. U.S. Intl. Change in Benefit Obligation Benefit obligation at January 1 $ 1,806 2,591 1,525 2,866 145 107 Service cost 58 34 49 38 2 1 Interest cost 93 130 76 114 8 5 Plan participant contributions 14 12 Plan amendments 57 (2) Business combinations 237 42 Actuarial (gain) loss 89 (59) (4) (202) (3) 5 Benefits paid (204) (142) (98) (134) (39) (27) Curtailment 3 (8) 8 1 Recognition of termination benefits 13 Foreign currency exchange rate change 243 (148) Benefit obligation at December 31* $ 1,845 2,789 1,806 2,591 126 145 *Accumulated benefit obligation portion of above at December 31: $ 1,767 2,577 1,703 2,392 Change in Fair Value of Plan Assets Fair value of plan assets at January 1 $ 1,556 2,907 1,306 3,085 Actual return on plan assets 166 192 66 18 Company contributions 148 50 83 88 25 15 Plan participant contributions 14 12 Business combinations 199 Benefits paid (204) (142) (98) (134) (39) (27) Foreign currency exchange rate change 277 (150) Fair value of plan assets at December 31 $ 1,666 3,284 1,556 2,907 Funded Status $ (179) 495 (250) 316 (126) (145) Millions of Dollars Pension Benefits Other Benefits 2025 2024 2025 2024 U.S. Intl. U.S. Intl. Amounts Recog …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Note 19Related Party Transactions The following tables summarize the related party balances and activities which are primarily with equity affiliates: Millions of Dollars December 31 2025 December 31 2024 Balance Sheet Accounts and notes receivable $ 79 74 Accounts payable 64 57 Millions of Dollars 2025 2024 2023 Income Statement Operating revenues and other income $ 73 88 90 Purchased commodities 1 Operating expenses and selling, general and administrative expenses 286 246 282 …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

Note 18Sales and Other Operating Revenues Revenue from Contracts with Customers The following table provides further disaggregation of our consolidated sales and other operating revenues: Millions of Dollars 2025 2024 2023 Revenue from contracts with customers $ 51,824 49,418 48,522 Revenue from contracts outside the scope of ASC Topic 606 Physical contracts meeting the definition of a derivative 7,201 5,483 8,203 Financial derivative contracts (81) (156) (584) Consolidated sales and other operating revenues $ 58,944 54,745 56,141 Revenues from contracts outside the scope of ASC Topic 606, Revenue from Contracts with Customers, relate primarily to physical gas contracts at market prices, which qualify as derivatives accounted for under ASC Topic 815, Derivatives and Hedging, and for which we have not elected NPNS. There is no significant difference in contractual terms or the policy for recognition of revenue from these contracts and those within the scope of ASC Topic 606. Further disaggregation of revenues is provided in Note 22 - Segment Disclosures and Related Information . Practical Expedients Typically, our commodity sales contracts are less than 12 months in duration; however, in certain specific cases may extend longer, which may be out to the end of field life. We have long-term commodity sales contracts which use prevailing market prices at the time of delivery, and under these contracts, the market-based variable consideration for each performance obligation (i.e., …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Note 22Segment Disclosures and Related Information We explore for, produce, transport and market crude oil, bitumen, natural gas, LNG and NGLs on a worldwide basis. We manage our operations through five operating segments, which are primarily defined by geographic region: Alaska; Lower 48 (L48); Canada; Europe, Middle East and North Africa (EMENA); and Asia Pacific (AP). Corporate and Other (Corporate) represents income and costs not directly associated with an operating segment, such as most interest expense, premiums on early retirement of debt, corporate overhead and certain technology activities, including licensing revenues. Corporate assets include all cash and cash equivalents and short-term investments. Effective in the fourth quarter of 2025, we determined that our former Other International operating segment, which consisted of activities associated with prior operations in other countries, was no longer an operating segment. Residual results are aggregated into Corporate. Our historical operating segment reporting has been recast to reflect this change. Our chief operating decision maker (CODM) is our Chairman of the Board of Directors and Chief Executive Officer, who evaluates performance and allocates resources among our operating segments based on each segment's net income (loss). This is done through the annual budget and forecasting process. Segment accounting policies are the same as those in Note 1 . Intersegment sales are at prices that approximate market. …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 1Accounting Policies Consolidation Principles and Investments Our consolidated financial statements include the accounts of majority-owned, controlled subsidiaries and, if applicable, variable interest entities where we are the primary beneficiary. The equity method is used to account for investments in affiliates in which we have the ability to exert significant influence over the affiliates operating and financial policies. When we do not have the ability to exert significant influence, the investment is measured at fair value except when the investment does not have a readily determinable fair value. For those exceptions, it will be measured at cost minus impairment, plus or minus observable price changes in orderly transactions for an identical or similar investment of the same issuer. Undivided interests in oil and gas joint ventures, pipelines, natural gas plants and terminals are consolidated on a proportionate basis. We manage our operations through five operating segments, defined by geographic region: Alaska; Lower 48; Canada; Europe, Middle East and North Africa; and Asia Pacific. See Note 22 . Foreign Currency Translation Adjustments resulting from the process of translating foreign functional currency financial statements into U.S. dollars are included in accumulated other comprehensive income (loss) in common stockholders equity. Foreign currency transaction gains and losses are included in current earnings. Some of our foreign operations use their local cu …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Note 12Equity Common Stock The changes in our shares of common stock, as categorized in the equity section of the balance sheet, were: Shares 2025 2024 2023 Issued Beginning of year 2,250,672,734 2,103,772,516 2,100,885,134 Acquisition of Marathon Oil 142,941,624 Distributed under benefit plans 2,845,548 3,958,594 2,887,382 End of year 2,253,518,282 2,250,672,734 2,103,772,516 Held in Treasury Beginning of year 974,806,010 925,670,961 877,029,062 Repurchase of common stock 53,544,176 49,135,049 48,641,899 End of year 1,028,350,186 974,806,010 925,670,961 Preferred Stock We have authorized 500 million shares of preferred stock, par value $0.01 per share, none of which was issued or outstanding at December 31, 2025 or 2024. Repurchase of Common Stock In late 2016, we initiated our current share repurchase program. In October 2024, our Board of Directors approved an increase from our prior authorization of $45 billion by a total of the lesser of $20 billion or the number of shares issued in our acquisition of Marathon Oil, such that the company is not to exceed $65 billion in aggregate purchases. Since inception of our current program, shares repurchased totaled 486 million shares at a cost of $39.3 billion through the end of December 2025. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Note 6Contingencies, Commitments and Accrued Environmental Costs A number of lawsuits involving a variety of claims arising in the ordinary course of business have been filed against ConocoPhillips. We also may be required to remove or mitigate the effects on the environment of the placement, storage, disposal or release of certain chemical, mineral and petroleum substances at various active and inactive sites. We regularly assess the need for accounting recognition or disclosure of these contingencies. In the case of all known contingencies (other than those related to income taxes), we accrue a liability when the loss is probable and the amount is reasonably estimable. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the low end of the range is accrued. We do not reduce these liabilities for potential insurance or third-party recoveries. We accrue receivables for insurance or other third-party recoveries when applicable. With respect to income tax-related contingencies, we use a cumulative probability-weighted loss accrual in cases where sustaining a tax position is less than certain. Based on currently available information, we believe it is remote that future costs related to known contingent liability exposures will exceed current accruals by an amount that would have a material adverse impact on our consolidated financial statements. As we learn new facts concerning contingencies, we reasse …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 4Debt Our debt balance at March 31, 2026, was $23.3 billion, compared with $23.4 billion at December 31, 2025 . In the first quarter of 2026, the company retired $67 million principal amount of our 6.875% Notes at maturity. At March 31, 2026, we had $283 million of certain variable rate demand bonds (VRDBs) outstanding with maturities ranging through 2035. The VRDBs are redeemable at the option of the bondholders on any business day. If they are ever redeemed, we have the ability and intent to refinance on a long-term basis; therefore, the VRDBs are included in the Long-term debt line on our consolidated balance sheet. …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table provides further disaggregation of our consolidated sales and other operating revenues: Millions of Dollars Three Months Ended March 31 2026 2025 Revenue from contracts with customers $ 13,500 14,479 Revenue from contracts outside the scope of ASC Topic 606 Physical contracts meeting the definition of a derivative 2,139 1,970 Financial derivative contracts 122 68 Consolidated sales and other operating revenues $ 15,761 16,517

DisaggregationOfRevenueTableTextBlock

"Note 8Fair Value Measurement We carry a portion of our assets and liabilities at fair value that are measured at the reporting date using an exit price (i.e., the price that would be received to sell an asset or paid to transfer a liability) and disclosed according to the quality of valuation inputs under the fair value hierarchy. The classification of an asset or liability is based on the lowest level of input significant to its fair value. Those that are initially classified as Level 3 are subsequently reported as Level 2 when the fair value derived from unobservable inputs is inconsequential to the overall fair value, or if corroborated market data becomes available. Assets and liabilities initially reported as Level 2 are subsequently reported as Level 3 if corroborated market data is no longer available. There were no material transfers into or out of Level 3 during the three-month period ended March 31, 2026, or during the year ended December 31, 2025. Recurring Fair Value Measurement Financial assets and liabilities reported at fair value on a recurring basis include our investments in debt securities classified as available for sale, commodity derivatives and our contingent consideration arrangement related to the Surmont acquisition. Level 1 derivative assets and liabilities primarily represent exchange-traded futures and options that are valued using unadjusted prices available from the underlying exchange. Level 1 financial assets also include our investments in U …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 17Income Taxes Our effective tax rate for the three-month periods ended March 31, 2026, and March 31, 2025, was 35.1 percent and 36.2 percent, respectively. The change in the effective tax rate for the three-month period ended March 31, 2026, is primarily due to a shift in our mix of income among taxing jurisdictions, partially offset by the March 31, 2025 change to our valuation allowance, described below. During the first quarter of 2025, our valuation allowance decreased $56 million, relating to the expected utilization of previously unrecognized capital loss carryforwards due to our agreement to sell our interests in the Ursa and Europa fields, and the Ursa Oil Pipeline Company LLC to Shell Offshore Inc. and Shell Pipeline Company LP, respectively. The company has ongoing income tax audits in a number of jurisdictions. The government agents in charge of these audits regularly request additional time to complete audits, which we generally grant, and conversely, occasionally close audits unpredictably. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses to disaggregate the disclosures about a public business entitys expenses (including purchases of inventory, employee compensation, depreciation, depletion and amortization) in commonly presented expense captions. The ASU will impact our financial statement disclosures only and will be applied prospectively with retrospective application permitted. The ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, and early adoption is permitted. We are currently evaluating the impact of the adoption of this ASU. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Note 13Employee Benefit Plans Pension and Postretirement Plans Millions of Dollars Pension Benefits Other Benefits 2026 2025 2026 2025 U.S. Int'l. U.S. Int'l. Components of net periodic benefit cost Three months ended March 31 Service cost $ 11 8 15 8 Interest cost 21 34 23 31 1 2 Expected return on plan assets (20) (53) (19) (45) Amortization of prior service cost (credit) (1) (6) Recognized net actuarial loss (gain) 2 9 3 11 Settlements 9 1 Net periodic benefit cost $ 23 (2) 22 6 (4) The components of net periodic benefit cost, other than the service cost component, are included in the ""Other expenses"" line of our consolidated income statement. During the three-month period ended March 31, 2026, lump-sum benefit payments exceeded the sum of service and interest costs for the year for the U.S. qualified pension plan. As a result, we recognized a proportionate share of prior actuarial losses from other comprehensive income as pension settlement expense of $9 million. In conjunction with the recognition of pension settlement expense, the fair market value of the pension plan assets was updated, and the pension benefit obligation of the U.S. qualified pension plan was remeasured at March 31, 2026. At the measurement date, the net pension liability increased by $39 million, primarily due to lower than premised return on assets, partially offset by an increase in the discount rate, resulting in a corresponding decrease to other comprehensive income. Severance Accrual The follo …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Note 12Related Party Transactions The following tables summarize the related party balances and activities which are primarily with equity affiliates: Millions of Dollars March 31 2026 December 31 2025 Balance Sheet Accounts and notes receivable $ 74 79 Accounts payable 51 64 Millions of Dollars Three Months Ended March 31 2026 2025 Income Statement Operating revenues and other income $ 11 24 Purchased commodities (3) 2 Production and operating expenses and selling, general and administrative expenses 45 85 …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

Note 16Segment Disclosures and Related Information We explore for, produce, transport and market crude oil, bitumen, natural gas, LNG and NGLs on a worldwide basis. We manage our operations through five operating segments, which are primarily defined by geographic region: Alaska; Lower 48 (L48); Canada; Europe, Middle East and North Africa (EMENA); and Asia Pacific (AP). Corporate and Other (Corporate) represents income and costs not directly associated with an operating segment, such as most interest expense, premiums on early retirement of debt, corporate overhead and certain technology activities, including licensing revenues. Corporate assets include all cash and cash equivalents and short-term investments. Our chief operating decision maker (CODM) is our Chairman of the Board of Directors and Chief Executive Officer, who evaluates performance and allocates resources among our operating segments based on each segment's net income (loss). This is done through the annual budget and forecasting process. Intersegment sales are at prices that approximate market. Analysis of Results by Operating Segment Three Months Ended March 31, 2026 Millions of Dollars Alaska L48 Canada EMENA AP Segments Total Corporate Consolidated Total Segment sales and other operating revenues Sales and other operating revenues # $ 1,523 11,086 1,673 1,627 501 16,410 22 16,432 Intersegment eliminations (6) (656) (662) (9) (671) Consolidated sales and other operating revenues 1,523 11,080 1,017 1,627 501 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 9Changes in Equity Millions of Dollars Common Stock Par Value Capital in Excess of Par Treasury Stock Accum. Other Comprehensive Income (Loss) Retained Earnings Total For the three months ended March 31, 2026 Balances at December 31, 2025 $ 23 77,728 (76,217) (5,911) 68,864 64,487 Net income (loss) 2,183 2,183 Other comprehensive income (loss) (117) (117) Dividend declared ($0.84 per common share) (1,032) (1,032) Repurchase of company common stock (1,006) (1,006) Excise tax on share repurchases (7) (7) Distributed under benefit plans 33 33 Other (1) 1 Balances at March 31, 2026 $ 23 77,761 (77,231) (6,028) 70,016 64,541 Millions of Dollars Common Stock Par Value Capital in Excess of Par Treasury Stock Accum. Other Comprehensive Income (Loss) Retained Earnings Total For the three months ended March 31, 2025 Balances at December 31, 2024 $ 23 77,529 (71,152) (6,473) 64,869 64,796 Net income (loss) 2,849 2,849 Other comprehensive income (loss) 79 79 Dividend declared ($0.78 per common share) (998) (998) Repurchase of company common stock (1,500) (1,500) Excise tax on share repurchases (13) (13) Distributed under benefit plans 25 25 Other (1) 1 Balances at March 31, 2025 $ 23 77,554 (72,666) (6,394) 66,721 65,238 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing