Latest news with #ConocoPhillips'
Yahoo
28-05-2025
- Business
- Yahoo
After Sinking Nearly 30%, This Top Dividend Stock's Yield Is Approaching 4%. Time to Buy?
ConocoPhillips' dividend yield has risen as its stock price sank. The oil company has one of the lowest-cost operations in the oil patch. It has a leading free cash flow growth profile through 2029. 10 stocks we like better than ConocoPhillips › Shares of ConocoPhillips (NYSE: COP) have sunk almost 30% over the past year. The primary factor weighing on its stock has been falling oil prices. On a more positive note, the oil stock's slump has pushed its dividend yield up closer to 4%, well above the S&P 500's sub-1.5% yield. Here's a look at whether now's a good time to buy ConocoPhillips for dividend income. Oil prices have a major impact on the cash flows oil companies produce. However, some companies are in a better position to navigate oil price volatility than others. ConocoPhillips is one of those companies. On the first-quarter conference call, CEO Ryan Lance stated: ConocoPhillips is built for this [periods of market volatility], with clear competitive advantages. We have a deep, durable, and diverse portfolio. We have decades of inventory below our $40-per-barrel WTI [West Texas Intermediate] cost-to-supply threshold, both in the U.S. and internationally. He noted that in a world with "haves" and "have-nots," "we believe we are the clear leader of the 'haves,' and we have a disciplined capital allocation framework that is battle-tested through the cycles." The company's low-cost operations enable it to produce a lot of free cash flow. For example, it generated $5.5 billion in cash flow from operations and $2.1 billion in free cash flow in the first quarter. It also has a strong balance sheet, with $7.5 billion in cash at the end of the first quarter. The company's robust free cash flow and balance sheet strength enabled it to return $2.5 billion to investors during the first quarter, with $1 billion paid in dividends and a repurchase of $1.5 billion of its stock. ConocoPhillips tapped into its strong balance sheet to repurchase more shares in the quarter because it believes "our shares represent a very attractive investment at these prices," Lance said on the call. The company clearly believes its stock is a good buy right now. ConocoPhillips expects to produce even more free cash flow in the future. Lance stated on the call: "We are on the cusp of a compelling multiyear free cash flow growth trajectory, led by our high-quality longer-cycle investments in Alaska and LNG [liquefied natural gas]. This underlying improvement in our free cash flow will structurally lower our breakeven and increase our capacity to return capital to shareholders." The company estimates it will produce $6 billion in incremental free cash flow by 2029, assuming oil averages $70 a barrel, fueling sector-leading growth during that timeframe. A big driver is its $8 billion Willow project in Alaska, which will produce an average of 180,000 barrels of oil per day at its peak after it comes online in 2029. The company also has several LNG-related investments that will help fuel additional growth over the next few years, including projects in Qatar and along the U.S. Gulf Coast. The growing cash flows from these projects support the company's dividend growth strategy. ConocoPhillips aims to deliver dividend growth in the top 25% of companies in the S&P 500 in the future. It has been growing its payout at a more than 10% annual rate in recent years, including by 34% last year. The oil giant also plans to buy back more than $20 billion of its stock over the next few years. ConocoPhillips offers investors an attractive dividend that's approaching a 4% yield because of its sinking stock price. It expects to grow that dividend at a leading rate in the future, fueled by its robust cash flow growth profile. That combination of yield and growth makes it look like a top dividend stock to buy right now for those seeking an attractive and growing income stream and meaningful stock price upside potential. 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 $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% 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 May 19, 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. After Sinking Nearly 30%, This Top Dividend Stock's Yield Is Approaching 4%. Time to Buy? was originally published by The Motley Fool
New Straits Times
30-04-2025
- Business
- New Straits Times
ConocoPhillips ends RM13.7bil Sarawak deepwater project to refocus global priorities
KUALA LUMPUR: ConocoPhillips' decision to withdraw from operating the Salam-Patawali deepwater oil and gas (O&G) field project off Sarawak was made following an assessment of the company's global portfolio. The field was discovered in 2018 through a 50:50 joint venture with Petroliam Nasional Bhd (Petronas) and the project was expected to cost RM13.7 billion (US$3.13 billion). "ConocoPhillips has elected not to progress development of the WL4-00 project based solely on prioritisation within the company's global portfolio," it said in a statement. The withdrawal was first reported by a news outlet on April 15, with subsequent reports indicating that the decision was made earlier this month. According to ConocoPhillips' factsheet on its Asia Pacific operations dated April 2024, it has exploration, development and production activities across about 2.7 million net acres in Malaysia. As of April 2024, ConocoPhillips' operations in Malaysia cover 2.7 million net acres across exploration, development and production activities, according to the group's Asia Pacific factsheet.
Zawya
30-04-2025
- Business
- Zawya
ConocoPhillips President for Europe, Middle East and Africa (EMEA) to Speak at Invest in African Energy (IAE) 2025
Steinar Vaage, President – Europe, Middle East and Africa at ConocoPhillips, has been confirmed to speak at the upcoming Invest in African Energy (IAE) 2025 Forum ( taking place in Paris next month. Underscoring the strategic importance of Libya's energy sector to global operators and ConocoPhillips' ongoing commitment to the country's future, Vaage will join the Libya in Focus session, a key platform for dialogue around one of Africa's leading energy markets. IAE 2025 is an exclusive forum designed to facilitate investment between African energy markets and global investors. Taking place May 13-14, 2025 in Paris, the event offers delegates two days of intensive engagement with industry experts, project developers, investors and policymakers. For more information, please visit To sponsor or participate as a delegate, please contact sales@ ConocoPhillips is among the major international oil companies maintaining a presence in Libya's upstream sector. As a long-term partner, the company is working to enhance production following years of disruption, undertaking upgrades to existing infrastructure and targeting underdeveloped reserves. Current efforts are focused on increasing output at the concession – which presently produces around 375,000 barrels per day (bpd) – to between 600,000 and 700,000 bpd through new collaboration agreements, workover programs and pipeline integrity initiatives. ConocoPhillips' continued investment ( signals renewed optimism in Libya's ability to stabilize output and reemerge as a significant oil producer. The Libya in Focus session at IAE 2025 will explore new investment opportunities and operational strategies in Libya's energy sector, as the country seeks to increase oil production, launch new gas-focused expansion initiatives and strengthen infrastructure to support sustainable growth. Discussions will address ongoing sector reforms, the resurgence of upstream activities and frameworks for securing long-term growth amid a dynamic political environment. As Libya works to unlock its full production potential, the session aims to foster renewed international engagement and support the country's efforts to drive economic recovery through energy development. Distributed by APO Group on behalf of Energy Capital&Power.
Borneo Post
29-04-2025
- Business
- Borneo Post
ConocoPhillips likely to pull out from RM13.7 bln Sarawak project
This move by ConocoPhillips' is said to be driven in part by the uncertain regulatory environment arising from the spat between Petronas and the Sarawak state government. — Photo from ConocoPhillips KUCHING (April 29): US-based oil firm ConocoPhillips is reported to have decided to withdraw from operating the Salam-Patawali deepwater oil and gas field offshore Sarawak in what is said to be a 'country strategy review'. The project was originally discovered in 2018 by ConocoPhillips with Petroliam Nasional Berhad (Petronas) in a 50-50 joint-venture that was expected to cost RM13.7 billion. The Salam-Patawali exploration block encompasses 300,000 net acres primarily in the Salam and Benum fields off southern Sarawak. According to Channel News Asia (CNA), this move by ConocoPhillips' was driven in part by the uncertain regulatory environment arising from the spat between Petronas and the Sarawak state government. The report quoted two industry sources close to ConocoPhillips who separately confirmed the pullout, adding that the move was part of a 'country strategy review', which the company did not elaborate on. The industry executives said that ConocoPhillips would now be focusing on its activities in neighbouring Sabah, where it already has operations. The report further quoted a senior executive of a Western oil contracting firm based in Kuala Lumpur as saying: 'The sentiment is that foreign companies are uncomfortable because they see that Petronas is under pressure in Sarawak and the oil company (Petronas) is often the joint-venture partner in many exploration projects.' This development comes as Sarawak continues to bid for greater control over its natural resources, challenging Petronas' monopoly under the 1974 Petroleum Development Act. Sarawak formed Petroleum Sarawak Berhad (Petros) to assert rights, citing provisions within the Malaysia Agreement 1963 and constitutional state autonomy. Legal disputes include claims over resource management and a bank guarantee for gas supply. Sarawak maintains that its Oil Mining Ordinance and Land Code laws take precedence. This conflict holds implications for governance, regulatory certainty, and foreign investments in Malaysia's oil and gas sector. ConocoPhillips lead Petronas Petros Salam-Patawali
Yahoo
27-03-2025
- Business
- Yahoo
ConocoPhillips' Stock Is About as Cheap as It's Been Since 2023. Here's 1 Thing to Know Before You Buy.
Despite a strong rebound this month, ConocoPhillips (NYSE: COP) stock remains cheap, according to several valuation metrics. But you need to be looking ahead, not behind, to see it. That's because valuation metrics like the price-to-sales ratio and the price-to-earnings ratio are backward-looking, using figures that have already been achieved. Analysts are reporting that ConocoPhillips has a brighter future than past. And if you monitor the correct ratios, you may conclude that shares are a buy right now. The EV/EBITDA (enterprise value/earnings before interest, taxes, depreciation, and amortization) ratio is a great metric to use to gauge the attractiveness of oil stocks like ConocoPhillips. That's because it adjusts for certain unique aspects of the industry like high capital intensity, debt levels, and earnings cyclicality. It has a greater focus on cash flows, giving you a more consistent understanding of the business versus profits or sales figures. When looking at ConocoPhillips' EV/EBITDA ratio, shares don't seem overly cheap, trading at around 6 times EBITDA -- roughly in line with where shares traded at the end of 2023. But past results aren't what will matter. Future results will drive the direction of the share price. And when you dig into analyst expectations, shares look cheaper than they've been in some time. Using analyst estimates (which admittedly could be wrong), we can calculate that ConocoPhillips' stock trades at 5.3 times forward EBITDA. So based on what analysts believe the company will earn over the year ahead, the stock is cheaper than at first glance. Of course, shares were even cheaper a few weeks ago before the rebound. But importantly, they weren't a buy until you looked at forward-looking ratios. If you had done that, you would have seen that the stock was priced near its cheapest levels since 2023. To be clear, ConocoPhillips stock isn't the steal it was in early March. But shares are still cheaper than they first appear. And monitoring forward ratios that incorporate analyst estimates can help you identify your next buying opportunity. 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 Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $697,245!* Now, it's worth noting Stock Advisor's total average return is 845% — a market-crushing outperformance compared to 165% 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 March 24, 2025 Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. ConocoPhillips' Stock Is About as Cheap as It's Been Since 2023. Here's 1 Thing to Know Before You Buy. was originally published by The Motley Fool
