2024-04-10 21:48:36 ET
Summary
- ConocoPhillips shares have surged due to a growing US economy and OPEC+ supply limitations that boosted petroleum prices.
- The favorable operating environment is expected to result in a significant boost to ConocoPhillips' average petroleum prices in Q1'24.
- ConocoPhillips has potential for increased earnings and free cash flow, leading to potential stock buybacks and a higher variable rate of cash returns.
- The risk profile remains favorable ahead of Q1'24 earnings.
ConocoPhillips's ( COP ) shares have soared year-to-date, largely because the U.S. economy is expanding rapidly and OPEC+ members last month agreed to a new round of voluntary supply limitations that boosted petroleum prices to the $80+ per barrel price range. With improved operating conditions, production-focused energy companies like ConocoPhillips also have higher investment appeal for investors and are likely to boost their capital returns. I believe ConocoPhillips is headed for a very strong Q1’24 earnings release at the beginning of May and I continue to see a favorable risk profile, despite the strong increase in the company's valuation year-to-date!...
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ConocoPhillips: Oil At $85, Buy Or Sell?