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ConocoPhillips to Restart Normal Upstream Activities in Alaska

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ConocoPhillips (COP - Free Report) has reportedly planned to restart normal upstream operations at Alaska's North Slope in July.

The leading explorer and producer is curtailing production in Alaska this month as the crude pricing scenario is weak owing to the coronavirus pandemic and the commodity market is flooded. The company’s spokesperson said that the upstream firm already had plans of curtailing production volumes by roughly 100,000 barrels every day in June. However, ConocoPhillips started slashing production in the region since late-May.

ConocoPhillips’ spokesperson couldn’t provide the production figure for July in Alaska. However, according to the source, the upstream energy company will be resuming normal production. Since commodity prices are weak, the company will decide on a month-to-month basis on any further production cut.

Overall, although low oil prices are hurting ConocoPhillips’ operations, the company is likely to weather the unfavorable business scenario with its strong balance sheet. With cash balance of $3.9 billion and an undrawn $6-billion credit facility, the company has a strong liquidity profile.  Also, the company’s debt-to-capitalization ratio has been persistently been lower than the composite stocks belonging to the industry in the past year. This reflects the company’s significantly lower debt exposure in comparison to the industry.

Currently, ConocoPhillips carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy sector are Murphy USA Inc (MUSA - Free Report) , QEP Resources, Inc. (QEP - Free Report) and CNX Resources Corporation (CNX - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Murphy USA is likely to see earnings growth of 7% in the next five years.

QEP Resources has witnessed upward earnings estimate revisions for 2020 in the past 30 days.

CNX Resources has witnessed upward estimate revisions for 2020 bottom line in the past 60 days.

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