Shares declined 7.1% after earnings as investors appeared disappointed by the cautious outlook and ongoing natural gas headwinds, which weighed on growth prospects despite solid operational execution.
- Generated $1.8 billion in adjusted net income and $1.5 billion in free cash flow in Q1 2026.
- Returned nearly $950 million to shareholders via dividends and share repurchases during the quarter.
- Production volumes, per-unit cash operating costs, and DD&A outperformed guidance midpoints.
- Reallocated capital from natural gas to oil-focused assets due to near-term natural gas market softness and storage levels above the five-year average.
- Highlighted geopolitical risks, especially the Iran conflict, as a key factor driving oil price volatility and market uncertainty.
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