ConocoPhillips (COP) , a leading global exploration and production company, has signed a long-term agreement with Guangdong Pearl River Investment Management Group for the supply of liquefied natural gas (“LNG”). The upstream energy firm has signed an LNG sales and purchase agreement (“SPA”) with Pearl River Investment for a duration of 15 years.Neither ConocoPhillips nor Guangdong Pearl River Investment Management Group has disclosed the details of the agreement yet. However, according to sources familiar ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about ConocoPhillips (COP) .ConocoPhillips currently has an average brokerage re ...

Group 1 - ConocoPhillips (COP) has awarded a front-end engineering and design (FEED) study contract to Subsea7 (SUBCY) for the Previously Produced Fields (PPF) development project offshore Norway, with work set to begin immediately [1][2] - The FEED study will help COP finalize technical specifications and assess project details to make a final investment decision (FID), which could lead to a major subsea contract with Subsea7 valued between $300 million and $500 million [2][3] - The PPF are located 290 kilometers southwest of Stavanger, Norway, in the Greater Ekofisk Area, and the development will be connected to the Ekofisk Complex [4] Group 2 - ConocoPhillips currently holds a Zacks Rank 5 (Strong Sell), while Subsea7 has a Zacks Rank 1 (Strong Buy), indicating differing market perceptions of the two companies [5] - Diversified Energy Company and Expand Energy Corporation are highlighted as better-ranked stocks in the energy sector, both carrying a Zacks Rank 2 (Buy) [5] - Diversified Energy Company focuses on the production, transportation, and marketing of natural gas, benefiting from rising demand and prices [6] - Expand Energy, formed from the merger of Chesapeake Energy and Southwestern Energy, is positioned to capitalize on the increasing importance of natural gas in the energy transition [7]

ConocoPhillips (COP -1.71%) is in that group. Because of that, it's one of the top oil stocks to buy and hold during the current market environment. Oil prices have slumped this year. WTI, the primary U.S. oil price benchmark, has fallen more than 10% this year to the low-$60s. That's due to demand concerns from a potential slowdown in the global economy and increased supply as OPEC unwinds its voluntary production cuts faster than many anticipated. The slump in oil prices will impact the cash flows of oil ...

ConocoPhillips (COP) FY 2025 Annual General Meeting May 13, 2025 10:00 AM ET Speaker0 Good morning, ladies and gentlemen. I'm Ryan Lance, Chairman and CEO of ConocoPhillips. It's my pleasure to welcome you to the ConocoPhillips' twenty twenty five Annual Meeting of Stockholders. Please remember that you may vote your shares online at any time during this meeting prior to the closing of the polls, and you could submit questions through the text box located on your screen. In addition to myself, all the membe ...

Core Viewpoint - ConocoPhillips has successfully transformed into a low-cost oil producer, enhancing its cash flow generation capabilities even at lower oil prices, with expectations for further improvements in the future [1][5]. Production and Financial Performance - In the first quarter, ConocoPhillips produced an average of nearly 2.4 million barrels of oil equivalent (BOE) per day, an increase of 487,000 BOE per day year-over-year, primarily due to the acquisition of Marathon Oil [2]. - The company generated $5.5 billion in cash from operations, funding $3.4 billion in capital expenditures, repurchasing $1.5 billion in shares, and paying $1 billion in dividends [3]. - ConocoPhillips ended the period with $7.5 billion in cash and short-term investments, alongside $1 billion in long-term investments, while also reducing debt and selling noncore assets [4]. Cost Management and Future Outlook - The company is reducing its full-year capital spending guidance to $12.3 billion-$12.6 billion and adjusted operating cost guidance to $10.7 billion-$10.9 billion, while maintaining its production outlook of 2.3 million to 2.4 million BOE per day [6]. - ConocoPhillips anticipates generating an additional $6 billion in annual free cash flow by 2029 through investments in LNG and Alaska, assuming oil averages around $70 per barrel [7]. Shareholder Returns - Despite current oil prices around $60 per barrel, the company's strategy is expected to yield significant incremental free cash flow, allowing for increased shareholder returns through a growing dividend and share repurchase program [8]. - The company aims for dividend growth within the top 25% of S&P 500 companies and targets over $20 billion in share repurchases in the coming years [8][10]. Strategic Positioning - ConocoPhillips has strategically invested in low-cost oil resources through acquisitions and organic development, positioning itself for enhanced free cash flow generation this year and beyond [9][10].

Core Viewpoint - ConocoPhillips (COP) reported strong first-quarter 2025 earnings, exceeding expectations due to higher oil equivalent production volumes and a positive business outlook [1][2]. Financial Performance - Adjusted earnings per share for Q1 were $2.09, surpassing the Zacks Consensus Estimate of $2.06 and increasing from $2.03 in the prior year [2]. - Quarterly revenues reached $17.1 billion, up from $14.48 billion year-over-year, and exceeded the Zacks Consensus Estimate of $16.54 billion [3]. Strategic Acquisitions - The acquisition of Marathon Oil has enhanced COP's upstream presence in the Lower 48, improving scale, production capacity, and operational efficiencies [4]. - COP has saved over $500 million through the integration of Marathon Oil, with additional estimated gains of $1 billion from debt refinancing, commercial synergies, and tax benefits [5]. Production Outlook - COP maintains a strong production outlook supported by low-cost drilling sites, with costs below $40 per barrel, ensuring continued production viability [6]. - The company's business model is resilient to commodity price fluctuations, allowing it to sustain operations and profitability even in a declining price environment [7]. Industry Context - Other energy majors like Chevron and BP have reported mixed results, with Chevron's earnings at $2.18 per share and BP's at 53 cents per share, both affected by lower oil price realizations [8][10]. - Despite COP's positive developments, the stock has declined 20.1% over the past six months, outperforming the 29.1% decline of the industry [12]. Valuation Metrics - COP is currently undervalued, trading at a trailing 12-month EV/EBITDA of 5.14x, compared to the industry average of 10.94x [15].

Production and Financial Performance - In Q1 2025, ConocoPhillips reported production of 2,389 MBOED, an increase of 487 MBOED or 26% compared to Q1 2024[154]. - The company generated $6.1 billion in cash provided by operating activities in Q1 2025, returning $2.5 billion to shareholders through share repurchases and dividends[138]. - Total revenues for the first three months of 2025 were $10.238 billion, with a net income of $2.849 billion[221]. - Net income for the first quarter of 2025 was $2,849 million, an increase of 11.7% from $2,551 million in the first quarter of 2024[163]. - Cash provided by operating activities increased to $6.1 billion in Q1 2025 from $5.0 billion in Q1 2024, primarily due to higher sales volumes from the acquisition of Marathon Oil assets[198]. Capital Expenditures and Investments - Full-year capital expenditure guidance was lowered to $12.3 to $12.6 billion from approximately $12.9 billion[149]. - Capital expenditures and investments for Q1 2025 totaled $3.378 billion, with full-year guidance set between $12.3 billion and $12.6 billion[217][218]. - Capital expenditures in Alaska were $1.046 billion in Q1 2025, up from $720 million in Q1 2024[217]. Asset Sales and Acquisitions - ConocoPhillips completed $1.3 billion in noncore asset sales in the Lower 48 segment, contributing to a target of $2 billion in disposition proceeds[134]. - The company recognized proceeds from asset dispositions of $0.6 billion in Q1 2025, with total proceeds from subsequent dispositions reaching approximately $1.3 billion[204]. - The company expects to capture over $1 billion in synergies from the acquisition of Marathon Oil within the first full year post-transaction[133]. Segment Performance - The Lower 48 segment reported net income of $1,790 million, up 29.7% from $1,381 million in the same period last year[171]. - Alaska's net income decreased to $327 million in Q1 2025 from $346 million in Q1 2024, reflecting lower realized prices[166]. - Canada segment's net income increased to $256 million in Q1 2025, compared to $180 million in Q1 2024, driven by higher volumes[177]. - Europe, Middle East and North Africa reported net income of $419 million, up from $304 million in Q1 2024, attributed to higher volumes and prices[181]. - Asia Pacific's net income fell to $311 million in Q1 2025 from $512 million in Q1 2024, impacted by lower realized prices and exploration expenses[185]. Pricing and Market Conditions - Average realized prices for crude oil decreased to $71.65 per barrel in Q1 2025, down 9% from $78.64 per barrel in Q1 2024[152]. - Brent crude oil prices averaged $75.66 per barrel in Q1 2025, a decrease of 9% compared to $83.24 per barrel in Q1 2024[144]. - U.S. Henry Hub natural gas prices averaged $3.65 per MMBTU in Q1 2025, an increase of 62% from $2.25 per MMBTU in Q1 2024[145]. - Total average realized price for the company was $53.34 per BOE in Q1 2025, down from $56.60 per BOE in Q1 2024[147]. Shareholder Returns - The company declared a second-quarter ordinary dividend of $0.78 per share[135]. - The company paid ordinary dividends of $0.78 per share in Q1 2025, compared to $0.58 per share in Q1 2024[214]. - The company repurchased 15.1 million shares for $1.5 billion in Q1 2025, bringing total repurchases since the program's inception to $35.8 billion[215]. Debt and Liquidity - Total liquidity as of March 31, 2025, was $12.7 billion, including cash and cash equivalents of $6.3 billion and available borrowing capacity of $5.5 billion[197]. - The total debt decreased to $23.784 billion as of March 31, 2025, from $24.324 billion at the end of 2024[208]. Environmental and Climate Strategy - As of March 31, 2025, the company has accrued environmental costs totaling $210 million, an increase from $206 million at December 31, 2024[227]. - The company is identified as a potentially responsible party under CERCLA at 16 sites across the U.S.[227]. - The company expects to incur substantial environmental expenditures over the next 30 years[227]. - The Climate Risk Strategy aims to manage climate-related risks and optimize opportunities, focusing on emissions reduction and technology development[230]. - The company is progressing towards its Scope 1 and Scope 2 emissions intensity targets as part of its accountability measures[231]. Risks and Challenges - The company faces risks from volatile commodity prices, which could adversely affect operating results and strategy execution[233]. - Potential disruptions to operations may arise from extraordinary weather events, supply chain issues, and geopolitical factors[234]. - Market risks for the three months ended March 31, 2025, remain consistent with previous disclosures in the 2024 Annual Report[235].

Financial Data and Key Metrics Changes - The company generated $2.9 per share in adjusted earnings for the first quarter of 2025, with cash flow from operations (CFO) amounting to $5.5 billion, including $200 million from APLNG distributions [16][20] - Capital expenditures were reported at $3.4 billion, with a return of capital totaling $2.5 billion to shareholders, which represents 45% of CFO for the quarter [16][17] - The company ended the quarter with $7.5 billion in cash and short-term investments, plus $1 billion in long-term liquid investments [17] Business Line Data and Key Metrics Changes - Total production for the first quarter was 2,389,000 barrels of oil equivalent per day, exceeding production guidance [15] - In the Lower 48, production averaged 1,462,000 barrels of oil equivalent per day, with specific contributions from the Permian (816,000), Eagle Ford (370,000), and Bakken (212,000) [15] Market Data and Key Metrics Changes - The macro environment is characterized by uncertainty and volatility, with revised outlooks for global economic growth and oil demand [8] - Oil prices have softened compared to the first quarter, influenced by OPEC plus unwinding voluntary cuts quicker than expected [9] Company Strategy and Development Direction - The company is focused on maintaining a disciplined capital allocation framework and is executing well on the integration of Marathon Oil, which is ahead of schedule [10][11] - The company aims to deliver low single-digit production growth while reducing capital spending by approximately $500 million for the full year [19][20] - The long-term value proposition is centered on a deep, durable, and diverse portfolio with decades of low-cost supply inventory [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current macro uncertainties but emphasizes a long-term focus on free cash flow growth, particularly from high-quality investments in Alaska and LNG [12][13] - The company is prepared to manage through challenging environments, with flexibility in its capital program if conditions warrant [11][12] Other Important Information - Bill Bullock announced his retirement after 39 years with the company, with Andy O'Brien set to take over as CFO [13][14] - The company has identified $1 billion in synergy captures from the Marathon integration, with ongoing efficiency improvements [72][73] Q&A Session Summary Question: Return of capital and cash flow outlook - Analyst inquired about the $10 billion capital return target amidst a softer commodity macro environment and the potential for debt to support share buybacks [24] - Management reiterated the commitment to a 45% return of capital based on cash flow from operations, with flexibility to use cash on the balance sheet if necessary [26][27] Question: Capital budget reduction details - Analyst asked for details on the drivers behind the capital budget reduction and the flexibility in the program [29] - Management explained that the reduction is due to capital efficiency improvements and plan optimization, with no material changes to production guidance [31][32] Question: Cost structure and improvement opportunities - Analyst sought insights on the current cost structure and opportunities for further improvement [36] - Management emphasized a continuous focus on cost efficiency and benchmarking against peers to maintain competitive advantage [37] Question: Balancing low-cost supply with macro conditions - Analyst questioned how the company balances low-cost supply with macro conditions while preserving inventory [40] - Management highlighted the importance of low-cost supply and the focus on maximizing returns on capital investments [41][42] Question: Breakeven clarification - Analyst asked about the impact of the capital reduction on breakeven costs [48] - Management clarified that the free cash flow breakeven is in the mid-40s, with expectations for it to decrease as capital is reduced [51][52] Question: Long cycle projects and capital allocation - Analyst inquired about the trend of capital allocation to long cycle projects [93] - Management indicated that capital is expected to ramp down as projects come online, with continued investment in base businesses [94] Question: Cash taxes and outlook - Analyst asked about the higher cash taxes in the first quarter and the outlook for the remainder of the year [97] - Management explained that the increase was due to a shift in income mix and discrete deferred tax items, with expectations for the effective tax rate to be in the high thirties [100][101]

Financial Data and Key Metrics Changes - The company generated $2.9 per share in adjusted earnings for the first quarter of 2025, with cash flow from operations (CFO) amounting to $5.5 billion, including $200 million from APLNG distributions [14][15] - Capital expenditures were reported at $3.4 billion, with a return of capital to shareholders totaling $2.5 billion, which represents 45% of CFO for the quarter [14][15] - The company ended the quarter with $7.5 billion in cash and short-term investments, plus $1 billion in long-term liquid investments [15] Business Line Data and Key Metrics Changes - Total production for the first quarter was 2,389,000 barrels of oil equivalent per day, exceeding production guidance [13] - In the Lower 48, production averaged 1,462,000 barrels of oil equivalent per day, with specific contributions from the Permian (816,000), Eagle Ford (370,000), and Bakken (212,000) [13] Market Data and Key Metrics Changes - The company noted a softer oil price environment compared to the first quarter, with OPEC plus unwinding voluntary cuts quicker than expected [5][6] - The outlook for global economic growth and oil demand has been revised lower, contributing to the current volatility in the market [5] Company Strategy and Development Direction - The company is focused on maintaining a disciplined capital allocation framework and has reduced capital spending by $500 million while keeping production guidance unchanged [8][11] - The integration of Marathon Oil is progressing ahead of schedule, with the company finding additional opportunities to enhance capital efficiency and reduce costs [8][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current macro uncertainties but emphasized the company's strong long-term value proposition and competitive advantages [6][10] - The company is committed to returning a significant portion of cash flow to shareholders, maintaining a long-term track record of distributing 45% of annual CFO [9][10] Other Important Information - Bill Bullock, the CFO, announced his retirement after 39 years, with Andy O'Brien set to take over the role [11][12] - The company expects to see a modest use of cash on a full-year basis, with an operating working capital outflow of $800 million anticipated in the second quarter [18] Q&A Session Summary Question: Return of capital and cash flow outlook - The company is tracking towards a $10 billion return of capital for the year, despite a softer commodity macro environment [21] - Management indicated a willingness to use cash on the balance sheet if necessary to support share buybacks [22][24] Question: Capital budget reduction details - The capital budget reduction is largely driven by efficiency improvements and does not impact production guidance [27][30] - Management emphasized a measured approach to capital allocation, focusing on maximizing returns [31] Question: Cost structure and improvement opportunities - The company is continuously benchmarking operations and seeking efficiencies to maintain competitive advantage [35][36] Question: Balancing low-cost supply with macro conditions - The company remains focused on low-cost supply and is not looking to time the market with capital investments [42][45] Question: Breakeven clarification - The capital reduction will lower the breakeven point, with the current free cash flow breakeven in the mid-40s [51][52] Question: Long cycle projects and capital allocation - The company is committed to its long cycle projects and will not slow down investments in key areas like Willow and LNG [80] Question: Non-core asset sales and portfolio optimization - The company is always optimizing its portfolio and may consider non-core asset sales if cost of supply rises [105][106]