ConocoPhillips (COP - Free Report) has entered into an agreement with state-run Chilean firm Empresa Nacional del Petroleo OR ENAP to jointly explore and exploit oil and gas deposits in the Magallanes region. As reported by Reuters, per the agreement, ConocoPhillips will hold a stake of 49% in all the fields discovered in the region. ENAP will hold the majority stake of 51%.
ConocoPhillips plans to invest in the range of $70 million to $100 million in Chile. However, the actual amount will depend on the results of exploration in that region over the next four years. ConocoPhillips has been active with ENAP in the Magallanes region since Aug 2014. The duo has been focusing on conducting geographical and geological studies in the region.
The focus on Chile underlines the company’s aim of replacing reserves and sustaining production growth over the long term. Despite cuts in capital spending, ConocoPhillips expects major capital projects to be brought online in 2016. Surmount 2 and APLNG as well as a further ramp up of Foster Creek/Christina Lake is expected to facilitate production growth by 1% in 2016. The company also expects to lower operating expenses during this period.
Further, ConocoPhillips is poised to benefit from a pipeline of projects in the Gulf of Mexico, Malaysia, the liquefied natural gas project in Australia, the U.K., Norway, and the Canadian oil sands, as well as the U.S. Lower 48 liquids-rich plays. Oil sands expansion projects are on track. Last September, Foster Creek Phase F and the Britannia Long-Term Compression Project reported first yield, while the Gumusut floating production system achieved first production in October. These ramp-up activities are expected to fuel ConocoPhillips’ long-term production growth.
Currently, ConocoPhillips – the largest U.S. independent oil company – carries a Zacks Rank #3 (Hold). Some better-ranked players from the same space are CVR Refining, LP , Braskem S.A. (BAK - Free Report) and North Atlantic Drilling Limited . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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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) has entered into an agreement with state-run Chilean firm Empresa Nacional del Petroleo OR ENAP to jointly explore and exploit oil and gas deposits in the Magallanes region. As reported by Reuters, per the agreement, ConocoPhillips will hold a stake of 49% in all the fields discovered in the region. ENAP will hold the majority stake of 51%.
ConocoPhillips plans to invest in the range of $70 million to $100 million in Chile. However, the actual amount will depend on the results of exploration in that region over the next four years. ConocoPhillips has been active with ENAP in the Magallanes region since Aug 2014. The duo has been focusing on conducting geographical and geological studies in the region.
The focus on Chile underlines the company’s aim of replacing reserves and sustaining production growth over the long term. Despite cuts in capital spending, ConocoPhillips expects major capital projects to be brought online in 2016. Surmount 2 and APLNG as well as a further ramp up of Foster Creek/Christina Lake is expected to facilitate production growth by 1% in 2016. The company also expects to lower operating expenses during this period.
Further, ConocoPhillips is poised to benefit from a pipeline of projects in the Gulf of Mexico, Malaysia, the liquefied natural gas project in Australia, the U.K., Norway, and the Canadian oil sands, as well as the U.S. Lower 48 liquids-rich plays. Oil sands expansion projects are on track. Last September, Foster Creek Phase F and the Britannia Long-Term Compression Project reported first yield, while the Gumusut floating production system achieved first production in October. These ramp-up activities are expected to fuel ConocoPhillips’ long-term production growth.
Currently, ConocoPhillips – the largest U.S. independent oil company – carries a Zacks Rank #3 (Hold). Some better-ranked players from the same space are CVR Refining, LP , Braskem S.A. (BAK - Free Report) and North Atlantic Drilling Limited . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
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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