Core Insights - ConocoPhillips (COP) is a leading upstream energy company with significant operations in 14 countries, focusing on the exploration and production of crude oil, natural gas liquids, bitumen, and natural gas [1][3] - The company's production in the Lower 48 averaged 1,508 thousand barrels of oil equivalent per day (mboe/d) in Q2 2025, representing nearly 63% of total production [1][8] - COP's assets in the Lower 48 are located in major shale basins, providing 15 years of low-cost drilling inventory, further enhanced by the acquisition of Marathon Oil Corporation in 2024 [2][3] Operational Strategy - COP prioritizes efficiency gains and operational improvements over expanding drilling programs, leveraging its low-cost, high-return assets in the U.S. shale basins [3] - Advanced drilling techniques employed by COP reduce drilling duration and costs, enhancing productivity and cost efficiency [3] - The company's deep inventory position in the Lower 48 supports a robust production outlook, reinforcing its competitive position in the energy sector [3] Market Position and Valuation - COP's shares have decreased by 15% over the past year, compared to a 21.3% decline in the industry [7] - The company trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 5.39x, which is below the industry average of 9.24x [9] - The Zacks Consensus Estimate for COP's 2025 earnings has been revised upward over the past 30 days, indicating positive market sentiment [11]

Company Overview - ONEOK Inc. is an energy company based in Tulsa, OK, engaged in natural gas and natural gas liquids (NGL) businesses [11] - The company completed its acquisition of Magellan Midstream Partners, L.P. for $18.8 billion in September 2023, expanding its fee-based refined products and crude oil transportation business [11] Financial Metrics - ONEOK has a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating a solid position in the market [12] - The company has a Value Style Score of B, supported by a forward P/E ratio of 14.5, which is attractive for value investors [12] - The Zacks Consensus Estimate for fiscal 2025 has increased by $0.34 to $5.57 per share, with two analysts revising their earnings estimates upwards in the last 60 days [12] - ONEOK has an average earnings surprise of +0.4%, suggesting a consistent performance relative to expectations [12] Investment Consideration - With a solid Zacks Rank and top-tier Value and VGM Style Scores, ONEOK should be considered for investors' short lists [13]

Core Viewpoint - Petrus Resources Ltd. reported its financial and operational results for Q1 2025, highlighting stable production levels, strategic capital investments, and a focus on maintaining financial stability through hedging and infrastructure development [1][2][4]. Financial Performance - Average production for Q1 2025 was 8,929 boe/d, slightly down from 9,066 boe/d in Q4 2024 [6][8]. - The total realized price increased by 11% to $29.35/boe from $26.45/boe in the previous quarter, primarily due to improved natural gas pricing [6][8]. - Funds flow generated was $12.5 million, or $0.10 per share, maintaining gains from Q4 2024 [6][9]. - The company paid a regular monthly dividend of $0.01 per share, totaling $3.8 million, with $2.6 million reinvested under the dividend reinvestment plan [6][9]. Capital Expenditures - Petrus invested $17.3 million in capital during the quarter, with approximately 60% directed towards drilling, completing, and tying in 7 gross (4.1 net) wells [6][8]. - The remaining capital expenditures were focused on the construction of a 12-kilometer expansion of the North Ferrier pipeline, aimed at enhancing access to undeveloped lands and cost-effective transportation of natural gas [6][8]. Debt and Financial Stability - Net debt increased to $66.0 million as of March 31, 2025, with a net debt to annualized funds flow ratio of 1.3x, attributed to high capital spending [6][9]. - The company anticipates a decline in net debt in the second half of the year, forecasting a return to the 2025 guidance target of $60 million by year-end [4][6]. Production and Pricing Details - Natural gas production averaged 35,689 mcf/d, while oil and condensate production averaged 1,202 bbl/d, and NGLs averaged 1,777 bbl/d [8][9]. - The realized price for natural gas was $2.25/mcf, while oil and condensate realized $92.73/bbl, and NGLs realized $39.54/bbl [8][9]. Outlook - The 2025 capital program is on schedule, with drilling operations continuing through spring breakup and production expected to come online later in May [3][4]. - Approximately 56% of forecasted production for 2025 is hedged at an average price of $2.67/GJ for natural gas and CAD$94.75/bbl for oil, positioning the company to achieve guidance targets [4][6].

Financial Performance & Capital Allocation - EOG reported $1.6 billion in Adjusted Net Income for 1Q 2025[8] - Adjusted EPS was $2.87 and Adjusted CFPS was $5.09 for 1Q 2025[8] - Free Cash Flow for 1Q 2025 reached $1.3 billion[8] - EOG returned $1.3 billion to shareholders, including $0.5 billion in regular dividends and $0.8 billion in share repurchases in 1Q 2025[9] - The company is targeting a 7% increase in the regular dividend for 2025[18] Operational Highlights & Strategy - Total production reached $6.0 billion[10] - Oil production grew by 2% for 2025[12] - EOG is reducing its capital program by $200 million, aiming for ~$4.0 billion Free Cash Flow at $65 WTI and $3.75 HH[13, 14] - The company executed a bolt-on acquisition of ~30,000 net acres in the Eagle Ford[9] Emissions Targets - EOG aims to reduce GHG emissions intensity rate by 25% from 2019 levels by 2030[84] - The company is committed to maintaining near-zero methane emissions (0.20% or less) and zero routine flaring from 2025-2030[84]

Financial Data and Key Metrics Changes - For the fourth quarter, the company reported total net production of 86,700 BOE per day, with net income of $185 million and adjusted EBITDA of $601 million [21][35] - Average realized prices were $70.06 per barrel of oil, $2.31 per Mcf of gas, and $25.82 per barrel of NGLs [35] - The company generated $235 million in total revenues, with EBITDA of $162 million and operating cash flow of $134 million [36] - Free cash flow for the quarter was $81 million, leading to a distribution of $60 million or $0.50 per unit [36][62] Business Line Data and Key Metrics Changes - The company maintained a production mix of 24% oil, 52% natural gas, and 24% NGLs for the fourth quarter [35] - The company achieved a median payout period of 15 months for its wells, assuming flat pricing conditions [12] Market Data and Key Metrics Changes - The company anticipates a higher operating cash flow in 2025 due to recent increases in natural gas prices [10] - The commodity mix by revenue in 2024 was 59% oil, 21% natural gas, and 20% NGLs, with expectations of a shift towards 54% natural gas in 2025 [30] Company Strategy and Development Direction - The company focuses on four strategic pillars: maintaining financial strength, disciplined execution, disciplined reinvestment rate, and maximizing cash distributions [3][4] - The company plans to continue its acquisition strategy, targeting cash-flowing assets at discounted prices, and aims to maintain a low reinvestment rate to optimize distributions [6][32] - The company is looking to add a third rig in 2025 to enhance drilling activities in the Oswego and Anadarko formations [11][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term demand for natural gas, viewing it as a critical fuel for the next decade [53] - The company does not foresee a prolonged downturn similar to 2015-2020 and is prepared to make acquisitions when favorable opportunities arise [26][27] - Management emphasized the importance of maintaining a clean balance sheet and maximizing distributions during varying commodity price environments [20][19] Other Important Information - The company has a net debt-to-EBITDA ratio of 0.8x, indicating strong financial health [17] - The company has distributed over $1 billion to unitholders since inception, reflecting its commitment to returning capital [19] Q&A Session Summary Question: Expectations for gas and oil prices - Management expects to see better deals in both gas and oil, with a preference for crude oil acquisitions when prices are in the $60 range [42][43] Question: Value of infrastructure and potential monetization - Management views their infrastructure as critical to operations and does not plan to sell it, as it generates more EBITDA than its purchase price [44][46] Question: Timing and focus of the third rig - The third rig is expected to arrive soon, initially focusing on the Oswego formation before moving to the deep Mississippian project [49] Question: Competitive landscape for acquisitions - The competitive environment in the Mid-Con has increased, with well-capitalized companies seeking larger packages, but the company will continue to focus on smaller, accretive acquisitions [73][74] Question: Organic leasing opportunities - The company has significant acreage held by production and plans to allocate around $30 million for leasing in 2025, primarily in deeper areas [76][77] Question: Impact of non-op budget - The non-op budget remains consistently low, with limited participation in non-operated wells [87]