Latest news with #ConocoPhillips'
Yahoo
6 days ago
- Business
- Yahoo
This Oil Stock Is Now On Track to Produce an Extra $7 Billion in Surplus Cash by 2029
Key Points ConocoPhillips produced lots of cash in the second quarter despite lower commodity prices. The oil giant is returning a large percentage of its excess cash to shareholders. It now expects to produce $7 billion of additional annual surplus cash by 2029, giving it even more money to send to shareholders. 10 stocks we like better than ConocoPhillips › ConocoPhillips (NYSE: COP) is already a cash-gushing machine. The oil and gas giant's low-cost operations enable it to produce significant free cash flow. This allows it to invest in growing its operations, return cash to investors through dividends and buybacks, and maintain its fortress-like financial profile. The company's already robust cash flow will become even larger in the coming years. A combination of growth initiatives and cost savings is now on track to add $7 billion to its annual free cash flow total by 2029. That will give the oil stock even more money to return to shareholders. Drilling down into ConocoPhillips' second-quarter results ConocoPhillips' ability to print cash was on full display during the second quarter. The company generated $4.7 billion in cash from operations, despite a 19% decline in the average price it realized per barrel of oil equivalent (BOE) sold during the period compared to the second quarter of last year. It was able to partially mute the impact of lower commodity prices by significantly increasing its production. Its output averaged nearly 2.4 million BOE per day in the quarter, 446,000 BOE per day higher than the year-ago period. ConocoPhillips benefited from its acquisition of Marathon Oil, as well as a 3% increase in output from its legacy operations. The oil giant used that cash to fund $3.3 billion of capital expenditures and investments to maintain and grow its output. It also paid $1 billion in dividends, repurchased $1.2 billion of shares, and retired $200 million of debt at maturity. That brought its year-to-date total to $2.7 billion in share repurchases, $2 billion in dividend payments, and $700 million in debt reduction. The company ended the quarter with $5.7 billion in cash and short-term investments, and $1.1 billion in long-term investments, backing its fortress A-rated balance sheet. It padded its cash position by closing the sale of $700 million of non-core assets during the quarter and $1.3 billion through the first half of this year. ConocoPhillips has recently agreed to sell an additional $1.3 billion of non-core assets, which should close early in the fourth quarter. As a result, it has exceeded its target of selling $2 billion of assets following its acquisition of Marathon. The upcoming free-cash-flow growth wave ConocoPhillips expects to generate significantly more free cash flow in the future. In the near term, the company expects higher cash distributions from its APLNG investment, tax benefits from the "one big, beautiful bill," and lower capital spending to boost its free cash flow in the second half of the year. That assumes oil prices remain near their current level in the $60 to $70 a barrel range. The company also continues to expect to get a boost from its acquisition of Marathon Oil. It's on track to achieve its target of hitting $1 billion in cost savings from synergies by the end of this year, double its initial target of $500 million. Additionally, the company now expects to deliver another $1 billion in cost and margin enhancements by the end of next year. Meanwhile, ConocoPhillips continues to anticipate its long-cycle investments in liquified natural gas (LNG) and Alaska will fuel a $6 billion uplift in its free cash flow through 2029. The company has investments in three LNG projects (Port Arthur LNG in the U.S. and Qatar's North Field East and North Field South) that should come online over the next few years. The energy company continues to secure customers for this gas. It recently signed a regasification agreement for the Dunkerque terminal in France and a sales agreement in Asia, both of which will begin in 2028. Additionally, its major Willow project in Alaska should start producing by 2029. On top of all this, ConocoPhillips now plans to sell another $2.5 billion of non-core assets by the end of next year. These sales will give it additional cash to strengthen its fortress balance sheet or recycle into higher-quality assets. The company's growing free cash flow and cash balance will enable it to continue returning more money to investors. ConocoPhillips aims to deliver dividend growth within the top 25% of companies in the S&P 500 in the coming years. It also aims to repurchase over $20 billion of its stock in the first three years of closing the Marathon deal. A cash-producing juggernaut ConocoPhillips now expects to capture another $1 billion in cost savings from its Marathon deal. It's also on track to produce $6 billion in incremental free cash flow from its investments in LNG and Alaska. That will give the oil company a lot of money to return to shareholders in the future. Its combination of growing cash flows and rising cash returns could provide the fuel to produce strong total returns in the coming years, making it an attractive oil stock to consider for the long term. Should you invest $1,000 in ConocoPhillips right now? Before you buy stock in ConocoPhillips, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and ConocoPhillips wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,563!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,108,033!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Matt DiLallo has positions in ConocoPhillips. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This Oil Stock Is Now On Track to Produce an Extra $7 Billion in Surplus Cash by 2029 was originally published by The Motley Fool Sign in to access your portfolio
Business Wire
26-06-2025
- Business
- Business Wire
ConocoPhillips to Hold Second-Quarter Earnings Conference Call on Thursday, Aug. 7
HOUSTON--(BUSINESS WIRE)--ConocoPhillips (NYSE: COP) will host a conference call webcast on Thursday, Aug. 7, 2025, at 12:00 p.m. Eastern time to discuss second-quarter 2025 financial and operating results. The company's financial and operating results will be released before the market opens on Aug. 7. To access the webcast, visit ConocoPhillips' Investor Relations site, and click on the "Register" link in the Investor Presentations section. You should register at least 15 minutes prior to the start of the webcast. The event will be archived and available for replay later the same day, with a transcript available the following day. --- # # # --- About ConocoPhillips As a leading global exploration and production company, ConocoPhillips is uniquely equipped to deliver reliable, responsibly produced oil and gas. Our deep, durable and diverse portfolio is built to meet growing global energy demands. Together with our high-performing operations and continuously advancing technology, we are well positioned to deliver strong, consistent financial results, now and for decades to come. Visit us at
Euronews
25-06-2025
- Business
- Euronews
New climate-resistant initiatives underway in Qatar to conserve water in the desert
Qatar 365 examines sustainability efforts in Qatar. Aadel Haleem spoke with the Interim Leader of Bangladesh and Nobel Laureate, HE Professor Muhammad Yunus, to discuss why the global efforts to protect the planet are failing. The team also stopped by ConocoPhillips' Global Water Sustainability Center. Johanna Hoes visits two eco-friendly tech companies, Skydrops and agri-tech startup VFarms, who use smart water and food solutions on the ground.
Yahoo
14-06-2025
- Business
- Yahoo
Better Energy Stock: EOG Resources vs. ConocoPhillips
ConocoPhillips' long-cycle investments provide it with visible growth through the end of the decade. EOG Resources expects to produce a lot of cash over the next few years. 10 stocks we like better than ConocoPhillips › ConocoPhillips (NYSE: COP) and EOG Resources (NYSE: EOG) are two of the country's largest independent exploration and production (E&P) companies. They have two of the biggest and lowest-cost resource positions in the industry. Because of that, they produce a lot of cash, which provides them with money to return to shareholders. While they are two of the top energy stocks, most investors will likely only want to hold one in their portfolio. Here's a look at which one is the better buy right now. ConocoPhillips believes it has built an oil company that can thrive in any environment. It has an unmatched resource portfolio in the lower 48 states. When it comes to Tier 1 acreage (highest quality), ConocoPhillips holds the No. 1 position in the Delaware and Eagle Ford, No. 2 in the Bakken, and No. 3 in the Midland. It also operates in Alaska, has a growing global liquefied natural gas (LNG) business, and other operations around the world. Its diversified portfolio has low costs (it has decades of inventory with a cost of supply below $40 a barrel) and balances short-cycle growth (unconventional shale development in the lower 48) with long-cycle growth (Alaska and LNG). The company's long-cycle growth gives it lots of visibility into its ability to grow its free cash flow in the coming years. ConocoPhillips estimates that Alaska and LNG will help drive $6 billion in incremental annual free cash flow through 2029, assuming oil averages $70 per barrel (just below the recent price point). That's a sector-leading free-cash-flow growth profile. ConocoPhillips plans to return a meaningful portion of its rapidly rising free cash flow to shareholders. The company aims to grow its dividend, which already yields more than 3%, within the top 25% of companies in the S&P 500. It also plans to repurchase over $20 billion of its stock in the next three years. That's enough to completely wipe out the additional shares it issued to acquire Marathon Oil last year. EOG Resources primarily focuses on the lower 48 states. It has positions in the Powder River Basin, Delaware Basin, Eagle Ford, Utica, and Dorado. It also has offshore oil and gas operations in Trinidad and Tobago and recently won an onshore exploration concession in the UAE. EOG Resources primarily grows by organically exploring for oil and gas throughout the lower 48 states. It focuses on finding the highest-quality acreage before anyone else. That strategy enables it to acquire land at minimal cost, setting it up to generate high investment returns on new wells. The company has recently deviated slightly from that strategy by making bolt-on acquisitions to expand its operations in key areas. It agreed to buy Encino Acquisition Partners for $5.6 billion to transform it into a leader in the Utica. EOG also made a smaller bolt-on acquisition in the Eagle Ford to bolster its position in that region. Those deals will enhance EOG Resources' already low-cost resource base, which produces a lot of free cash flow. The company believes it can generate between $12 billion and $22 billion of cumulative free cash flow in the 2024 to 2026 time frame if oil averages between $65 and $85 per barrel. That positions the company to grow its free cash flow per share at a more than 6% annual rate. Given its strong balance sheet even after the Encino deal, EOG will likely return most of its growing excess free cash flow to shareholders. It primarily does that by paying dividends. The company has grown its dividend twice as fast as its peer group average since 2019. It raised its payment by 7% earlier this year and by another 5% after unveiling the highly accretive Encino deal. Those raises pushed its yield further above 3%. The company will also return additional cash to shareholders via opportunistic share repurchases and occasional special dividends. ConocoPhillips and EOG Resources are two of the best-run companies in the oil patch. They have strong resource positions and great balance sheets, which enable them to generate a lot of cash, the bulk of which they return to shareholders. They also have lots of growth ahead. However, of the two, ConocoPhillips stands out as the better oil stock to buy right now. Its investments in LNG and Alaska increase its diversification and add more visibility to its growth potential in the coming years. Because of that, it should be able to continue growing its dividend at a high rate through the end of the decade while also buying back a meaningful amount of shares each year. That could give it the fuel to produce a higher total return than EOG over that period. Before you buy stock in ConocoPhillips, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and ConocoPhillips wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Matt DiLallo has positions in ConocoPhillips. The Motley Fool has positions in and recommends EOG Resources. The Motley Fool has a disclosure policy. Better Energy Stock: EOG Resources vs. ConocoPhillips was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-06-2025
- Business
- Yahoo
Was Jim Cramer Right Backing Sunoco (SUN) as a Reliable Dividend Play Last Year?
We recently published a list of . In this article, we are going to take a look at where Sunoco LP (NYSE:SUN) stands against other stocks that Jim Cramer discusses. In that older discussion, a caller expressed concern over how ConocoPhillips' acquisition of Marathon Oil might impact other related companies like NuStar Energy L.P., which has known for its generous 9% dividend. NuStar was also acquired by Sunoco LP (NYSE:SUN) during that month. Cramer reassured the caller, saying: 'You know I like them. NS I like. My understanding is they're separate — if I find otherwise, I'll tell you. I think MPLX is a terrific situation and I don't want to back away from it.' A truck parked at a gas station, its fuel tank being filled from a pump. Cramer's cautious optimism around the dividend play held up well with a +6.86% gain. Sunoco LP (NYSE:SUN) is a master limited partnership engaged in the wholesale distribution of motor fuels and operates a network of fuel stations and convenience stores across the U.S. Overall, SUN ranks 5th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of SUN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
