ConocoPhillips (COP) is on track to double free cash flow in four years, driven by steady improvements from 2026 to 2028 and a larger step-up when the Willow oil project in Alaska comes online in 2029, RBC Capital Markets said Thursday in a report.

The main debate around the company remains "the longer-term FCF inflection story, which conflicts with investors' desire for instant gratification," RBC said. With Willow, the FCF breakeven oil price is expected to fall to the low $30s per barrel from the mid-$40s current, the report said.

"The company appears well-positioned to maintain competitive FCF generation through various commodity price cycles," RBC said.

ConocoPhillips continues to show strong well productivity across major US basins, and management believes that can be sustained for more than a decade, supported by operational efficiencies and past acquisitions, the report said.

In Venezuela, management is focused on recovering $12 billion in arbitration claims in Venezuela with this potential recovery not reflected in the stock price, RBC said. Re-entering the country isn't currently a priority, the report said.

RBC has an outperform rating on ConocoPhillips stock with a $118 price target.

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