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Here's Why ConocoPhillips (COP) is an Attractive Investment Bet
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ConocoPhillips (COP - Free Report) has witnessed upward estimate revisions for 2022 and 2023 earnings in the past 60 days. Further, the leading upstream energy firm, sporting a Zacks Rank #1 (Strong Buy), is likely to record earnings growth of 69.6% in 2022.
Factors Working in Favor
The price of West Texas Intermediate crude, trading at more than $95 per barrel, has improved drastically over the past year. The significant rise in oil price is owing to conflict and geopolitical muscle-flexing between Russia and Ukraine.
Being a leading exploration and production company globally, ConocoPhillips is well-positioned to capitalize on the rally in crude price. ConocoPhillips has a strong footprint in prolific oil-rich plays like the Permian Basin, Eagle Ford and Bakken, brightening up the company’s production outlook. For 2022, the company expects production at 1.8 million barrel of oil equivalent per day (MMBoE/D), suggesting an improvement from 1.6 MMBoE/D for 2021.
Also, ConocoPhillips’ bottom line is being aided by declining exploration expenses. In 2021, COP reported exploration expenses of $344 million, reflecting a massive decline from $1.5 billion in 2020.
COP is strongly focused on returning capital to shareholders. ConocoPhillips revised higher its expected 2022 return of capital to shareholders. The new guidance is at $8 billion, reflecting an increase from the prior projection of $7 billion. The incremental returns to stockholders will get distributed through share repurchases and variable return of cash (VROC) tiers.
ExxonMobil is banking on key upstream projects centered around the Permian and offshore Guyana resources.
ExxonMobil reported strong fourth-quarter results, thanks to improved realized oil and natural gas prices as well as higher refining and chemical margins. In the past 30 days, ExxonMobil has witnessed upward earnings estimate revisions for 2022.
For this year, EOG Resources has laid out a plan to generate $6.4 billion in free cashflow at West Texas Intermediate crude price of $80 per barrel. EOG Resources has also committed to $1.7 billion in regular dividend payments.
With the employment of premium drilling, EOG Resources is reducing its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.
In the Permian basin, Chevron has a strong footprint. The majority of Chevron’s assets in the most prolific basin of the United States have minimal royal payments, thereby securing handsome cash flows in the long run.
In the past seven days, Chevron has witnessed upward earnings estimate revisions for 2022.
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Here's Why ConocoPhillips (COP) is an Attractive Investment Bet
ConocoPhillips (COP - Free Report) has witnessed upward estimate revisions for 2022 and 2023 earnings in the past 60 days. Further, the leading upstream energy firm, sporting a Zacks Rank #1 (Strong Buy), is likely to record earnings growth of 69.6% in 2022.
Factors Working in Favor
The price of West Texas Intermediate crude, trading at more than $95 per barrel, has improved drastically over the past year. The significant rise in oil price is owing to conflict and geopolitical muscle-flexing between Russia and Ukraine.
Being a leading exploration and production company globally, ConocoPhillips is well-positioned to capitalize on the rally in crude price. ConocoPhillips has a strong footprint in prolific oil-rich plays like the Permian Basin, Eagle Ford and Bakken, brightening up the company’s production outlook. For 2022, the company expects production at 1.8 million barrel of oil equivalent per day (MMBoE/D), suggesting an improvement from 1.6 MMBoE/D for 2021.
Also, ConocoPhillips’ bottom line is being aided by declining exploration expenses. In 2021, COP reported exploration expenses of $344 million, reflecting a massive decline from $1.5 billion in 2020.
COP is strongly focused on returning capital to shareholders. ConocoPhillips revised higher its expected 2022 return of capital to shareholders. The new guidance is at $8 billion, reflecting an increase from the prior projection of $7 billion. The incremental returns to stockholders will get distributed through share repurchases and variable return of cash (VROC) tiers.
Other Stocks to Consider
Other top-ranked players in the energy space includeExxon Mobil Corporation (XOM - Free Report) , EOG Resources (EOG - Free Report) and Chevron Corporation (CVX - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
ExxonMobil is banking on key upstream projects centered around the Permian and offshore Guyana resources.
ExxonMobil reported strong fourth-quarter results, thanks to improved realized oil and natural gas prices as well as higher refining and chemical margins. In the past 30 days, ExxonMobil has witnessed upward earnings estimate revisions for 2022.
For this year, EOG Resources has laid out a plan to generate $6.4 billion in free cashflow at West Texas Intermediate crude price of $80 per barrel. EOG Resources has also committed to $1.7 billion in regular dividend payments.
With the employment of premium drilling, EOG Resources is reducing its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.
In the Permian basin, Chevron has a strong footprint. The majority of Chevron’s assets in the most prolific basin of the United States have minimal royal payments, thereby securing handsome cash flows in the long run.
In the past seven days, Chevron has witnessed upward earnings estimate revisions for 2022.