ConocoPhillips (COP - Free Report) recently provided an ambitious 10-year operating plan and increased the share repurchase program. Its operational update includes the Concho Resources acquisition in January 2021.
Shareholder Return
The company intends to boost stock buybacks by $1 billion for 2021, which is in line with its plan of returning 30% cash from operations to shareholders. It resumed the share repurchase program in March at an annualized level of $1.5 billion. The latest buyback move is likely to bring total 2021 planned distribution to $6 billion. Importantly, in the 2022-2031 time period, the company expects to return more than $65 billion to shareholders, which will be funded by cash from operations. This is impressive.
More Savings
Markedly, ConocoPhillips has increased Concho Resources acquisition-related savings and synergies to $1 billion per annum from prior estimates of $500 million provided last October and $750 million announced in February 2021. The decision, from one of the biggest upstream firms, comes at a time when crude price is showing tremendous recovery from last year’s historic lows.
Capex
Furthermore, it has reduced 2021 capital expenditure by $200 million from the previous estimate of $5.5 billion. Also, it expects adjusted operating costs to decrease $100 million from the prior estimate to $6.1 billion. The company anticipates capital expenditures to average $7 billion per annum, which will likely result in 3% compound annual growth in production.
Others
ConocoPhillips, which has $84 billion of total assets, expects cash from operations to be $145 billion over 10 years. During this period, free cash flow is estimated to be $70 billion, assuming WTI Crude price level at $50 per barrel. It expects average breakeven price at $30 per barrel. Management is also likely to divest $2-$3 billion of assets to streamline its portfolio.
On the ESG front, the company is expected to reach net-zero flaring by 2025. It plans to reduce greenhouse gas intensity by 35-40% and become a net-zero emitter by 2050.
Price Performance
Its shares have gained 12.7% in the past three months compared with 10.9% rise of the industry it belongs to.
Zacks Rank & Stocks to Consider
ConocoPhillips currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include Antero Resources Corporation (AR - Free Report) , PHX Minerals Inc. (PHX - Free Report) and Pembina Pipeline Corporation (PBA - Free Report) , each having a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Antero Resources’ profits for 2021 are expected to surge 335.7% year over year.
PHX Minerals’ bottom line for 2021 is expected to jump 180% year over year.
Pembina Pipeline’s bottom line for 2021 is expected to rise 42.2% year over year.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
ConocoPhillips (COP - Free Report) recently provided an ambitious 10-year operating plan and increased the share repurchase program. Its operational update includes the Concho Resources acquisition in January 2021.
Shareholder Return
The company intends to boost stock buybacks by $1 billion for 2021, which is in line with its plan of returning 30% cash from operations to shareholders. It resumed the share repurchase program in March at an annualized level of $1.5 billion. The latest buyback move is likely to bring total 2021 planned distribution to $6 billion. Importantly, in the 2022-2031 time period, the company expects to return more than $65 billion to shareholders, which will be funded by cash from operations. This is impressive.
More Savings
Markedly, ConocoPhillips has increased Concho Resources acquisition-related savings and synergies to $1 billion per annum from prior estimates of $500 million provided last October and $750 million announced in February 2021. The decision, from one of the biggest upstream firms, comes at a time when crude price is showing tremendous recovery from last year’s historic lows.
Capex
Furthermore, it has reduced 2021 capital expenditure by $200 million from the previous estimate of $5.5 billion. Also, it expects adjusted operating costs to decrease $100 million from the prior estimate to $6.1 billion. The company anticipates capital expenditures to average $7 billion per annum, which will likely result in 3% compound annual growth in production.
Others
ConocoPhillips, which has $84 billion of total assets, expects cash from operations to be $145 billion over 10 years. During this period, free cash flow is estimated to be $70 billion, assuming WTI Crude price level at $50 per barrel. It expects average breakeven price at $30 per barrel. Management is also likely to divest $2-$3 billion of assets to streamline its portfolio.
On the ESG front, the company is expected to reach net-zero flaring by 2025. It plans to reduce greenhouse gas intensity by 35-40% and become a net-zero emitter by 2050.
Price Performance
Its shares have gained 12.7% in the past three months compared with 10.9% rise of the industry it belongs to.
Zacks Rank & Stocks to Consider
ConocoPhillips currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include Antero Resources Corporation (AR - Free Report) , PHX Minerals Inc. (PHX - Free Report) and Pembina Pipeline Corporation (PBA - Free Report) , each having a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Antero Resources’ profits for 2021 are expected to surge 335.7% year over year.
PHX Minerals’ bottom line for 2021 is expected to jump 180% year over year.
Pembina Pipeline’s bottom line for 2021 is expected to rise 42.2% year over year.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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