UBS Cautious on ConocoPhillips (COP) Amid Increased Willow Project Cost Estimates, Maintains ‘Buy’ Rating

Core Viewpoint - ConocoPhillips is currently considered one of the most undervalued stocks on the NYSE, with a price target adjustment by UBS from $122 to $117 while maintaining a Buy rating despite financial challenges related to the Willow project [1] Group 1: Financial Performance and Projections - UBS has lowered the price target for ConocoPhillips to $117 from $122, yet remains optimistic about the company's future performance [1] - The total spending plan for the Willow oil and natural gas project has increased to as much as $9 billion, up from an initial estimate of $7 to $7.5 billion, primarily due to inflationary costs of approximately $700 million [2] - ConocoPhillips anticipates starting oil production from the Willow project in early 2029, which is expected to yield around 600 million barrels of crude over a 30-year lifespan [3] Group 2: Strategic Importance - The Willow project is crucial for ConocoPhillips as it diversifies the company's portfolio amidst the maturation of shale basins in Texas [3] - The project aligns with the broader push for increased domestic oil production, highlighting its strategic significance for the company [3] Group 3: Company Overview - ConocoPhillips engages in the exploration, production, transportation, and marketing of crude oil, natural gas, and related products [4]