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ConocoPhillips (COP) to Proceed With Alaska's Willow Oil Project
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ConocoPhillips (COP - Free Report) has been granted financial approval for its Willow oil and gas drilling project in Alaska, with a budget of $8 billion.
Following the approval, the company has initiated winter construction. Residents of Alaska are now experiencing the positive outcomes of responsible energy development.
Earlier this spring, ConocoPhillips received favorable court decisions and approval from the Biden administration. The company had already started the initial phases of the $8-billion project. However, the latest announcement marks the official approval for the company to proceed with the development until it reaches the stage of producing the first oil.
The Willow project is positioned to be among the most productive oil fields on the North Slope. It is set to access approximately 600 million barrels of recoverable oil and has the capacity to yield up to 180,000 barrels per day. This will represent a substantial increase in North Slope production, which has declined since its peak in 1988 when it exceeded 2 million barrels per day.
Alaska officials have supported the development of the project, anticipating that it will mitigate the decline in oil production. The state's economy heavily depends on the oil and gas industry, and this initiative is seen as a way to address the challenges posed by declining production.
The Willow project, situated in the federally designated National Petroleum Reserve, had faced legal challenges from environmental and indigenous groups who expressed concerns about its environmental impacts. These groups raised specific concerns about the project's potential contribution to greenhouse gas emissions.
Certain groups opposed to the project filed lawsuits to stop it, claiming that the approval was improper due to the anticipated substantial greenhouse gas emissions, and potential impacts on wildlife and essential resources for locals. Despite their efforts, the U.S. Court of Appeals for the 9th Circuit rejected their request to pause winter work, allowing construction to proceed while the court evaluates the arguments presented in the case.
Zacks Rank & Key Picks
Currently, ConocoPhillips carries a Zack Rank #3 (Hold).
Murphy USA’s (MUSA - Free Report) unique high-volume and low-cost business model helps it retain high profitability, even in the fiercely competitive retail environment.
MUSA remains committed to returning excess cash to its shareholders through continued share buyback programs. As part of this initiative, the fuel retailer recently approved a repurchase authorization of up to $1.5 billion, following the completion of the existing $1-billion mandate. The move underscores MUSA’s sound financial position and commitment to rewarding its shareholders.
Sunoco LP (SUN - Free Report) is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. The Zacks Consensus Estimate for SUN’s 2023 and 2024 earnings per share is pegged at $5.19 and $3.83, respectively.
Sunoco has a core competency in terms of its history of disciplined expense management. Over the past few years, the company has demonstrated a remarkable ability to control total operating expenses, with an annual growth rate of only around 2% since 2019.
The Williams Companies (WMB - Free Report) is a premier energy infrastructure provider in North America. WMB has a thriving deepwater transportation business. The company's deepwater portfolio includes a 3,500-mile natural gas and oil gathering and transmission pipeline, and is important for future cash flows.
WMB’s debt maturity profile is in good shape, with its $4.5-billion revolver maturing in 2023. It is also paying shareholders an attractive dividend yielding around 5%. Beside this, it has a share repurchase program worth $1.5 billion, thus highlighting its commitment to shareholders.
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ConocoPhillips (COP) to Proceed With Alaska's Willow Oil Project
ConocoPhillips (COP - Free Report) has been granted financial approval for its Willow oil and gas drilling project in Alaska, with a budget of $8 billion.
Following the approval, the company has initiated winter construction. Residents of Alaska are now experiencing the positive outcomes of responsible energy development.
Earlier this spring, ConocoPhillips received favorable court decisions and approval from the Biden administration. The company had already started the initial phases of the $8-billion project. However, the latest announcement marks the official approval for the company to proceed with the development until it reaches the stage of producing the first oil.
The Willow project is positioned to be among the most productive oil fields on the North Slope. It is set to access approximately 600 million barrels of recoverable oil and has the capacity to yield up to 180,000 barrels per day. This will represent a substantial increase in North Slope production, which has declined since its peak in 1988 when it exceeded 2 million barrels per day.
Alaska officials have supported the development of the project, anticipating that it will mitigate the decline in oil production. The state's economy heavily depends on the oil and gas industry, and this initiative is seen as a way to address the challenges posed by declining production.
The Willow project, situated in the federally designated National Petroleum Reserve, had faced legal challenges from environmental and indigenous groups who expressed concerns about its environmental impacts. These groups raised specific concerns about the project's potential contribution to greenhouse gas emissions.
Certain groups opposed to the project filed lawsuits to stop it, claiming that the approval was improper due to the anticipated substantial greenhouse gas emissions, and potential impacts on wildlife and essential resources for locals. Despite their efforts, the U.S. Court of Appeals for the 9th Circuit rejected their request to pause winter work, allowing construction to proceed while the court evaluates the arguments presented in the case.
Zacks Rank & Key Picks
Currently, ConocoPhillips carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA’s (MUSA - Free Report) unique high-volume and low-cost business model helps it retain high profitability, even in the fiercely competitive retail environment.
MUSA remains committed to returning excess cash to its shareholders through continued share buyback programs. As part of this initiative, the fuel retailer recently approved a repurchase authorization of up to $1.5 billion, following the completion of the existing $1-billion mandate. The move underscores MUSA’s sound financial position and commitment to rewarding its shareholders.
Sunoco LP (SUN - Free Report) is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. The Zacks Consensus Estimate for SUN’s 2023 and 2024 earnings per share is pegged at $5.19 and $3.83, respectively.
Sunoco has a core competency in terms of its history of disciplined expense management. Over the past few years, the company has demonstrated a remarkable ability to control total operating expenses, with an annual growth rate of only around 2% since 2019.
The Williams Companies (WMB - Free Report) is a premier energy infrastructure provider in North America. WMB has a thriving deepwater transportation business. The company's deepwater portfolio includes a 3,500-mile natural gas and oil gathering and transmission pipeline, and is important for future cash flows.
WMB’s debt maturity profile is in good shape, with its $4.5-billion revolver maturing in 2023. It is also paying shareholders an attractive dividend yielding around 5%. Beside this, it has a share repurchase program worth $1.5 billion, thus highlighting its commitment to shareholders.