Wolfe Research Highlights ConocoPhillips’ (COP) Asset Sales, Anadarko Acquisition, and Future Cash Flow

Core Insights - ConocoPhillips (NYSE:COP) is highlighted as one of the top energy stocks to buy, with Wolfe Research reaffirming its Outperform rating and raising the price target to $131 from $130 following an 8% dividend increase [1][2] Financial Performance - The company is projected to achieve significant free cash flow growth, with an estimated $1 billion gain expected between 2026-2028, followed by a $4 billion increase in 2029 [2] - ConocoPhillips anticipates generating an additional $7 billion in free cash flow by 2029 once the Willow project becomes operational [3] Strategic Moves - The completion of the Anadarko acquisition and $0.5 billion in noncore asset dispositions have allowed ConocoPhillips to exceed its $3 billion asset sales target for 2025 [2] - Wolfe Research suggests that ConocoPhillips should be compared to larger energy companies like CNQ and CVX due to its clear free cash flow trajectory, rather than smaller shale-focused exploration and production companies [3] Company Overview - ConocoPhillips is a global energy company based in Texas, involved in the discovery, production, transportation, and trading of crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids [4]