Houston-based ConocoPhillips said last week it will allocate more capital to Permian Basin in 2026 to maintain operating efficiencies in its most profitable region. Andy O’Brien, CFO, said the increase in Permian spending will focus on operated and non-operated assets in Delaware Basin to maintain output level but not ramp up production. The company reported drilling and completion cost gains of 15 percent in 2025.
Capex in first quarter was just over $2.9 billion, including $1.5 billion in lower 48. Production was 2,309,000 boed total and 1,453,000 boed for lower 48. The company more than doubled the percentage of 3-mile-plus laterals compared to last year. Officers raised fullyear capital spending forecast to $12 billion-to-$12.5 billion from $12 billion.
Lower 48 production in 1Q included 698,000 boed from Delaware Basin, 200,000 boed from Midland Basin and 367,000 boed from Eagle Ford. Second quarter production is forecast at 2.185 million to 2.215 million boed, and fullyear production is forecast at 2.295 million to 2.325 million boed.
Ryan Lance, chairman and CEO, said April 30, “Amid ongoing macro volatility, ConocoPhillips delivered another quarter of strong financial and operational performance. We remain focused on delivering our value proposition.”