BUZZ-Street View: ConocoPhillips keeps FCF growth on a steady climb

Reuters
Feb 06
BUZZ-Street View: ConocoPhillips keeps FCF growth on a steady climb

** ConocoPhillips COP.N said on Thursday it aims to cut capital and operating costs by $1 billion in 2026, after the U.S. oil and gas producer missed Wall Street estimates for fourth-quarter profit due to weaker crude prices

** Median PT of 30 brokerages covering the stock is $115 - LSEG data

RESOURCE ABUNDANCE: A STRENGTH

** Barclays ("overweight," PT: $118) says COP stands out with a highly visible FCF (free cash flow) ramp as FCF yield is set to more than double from 2026 to 2030

** Adds, co's deep low-cost resource base provides growth upside from U.S. shale and long-term optionality across Alaska and international conventional assets

** Piper Sandler ("overweight," PT: $111) says COP is steadily executing on path to FCF growth

** Roth MKM ("buy," PT: $112) says cost savings should finally show up in 2026

** BMO ("outperform," PT: $115) says COP's deep and diverse asset base should provide resilient and outsized FCF generation plus competitive production growth, equating to a strong capital return profile

(Reporting by Joel Jose in Bengaluru)

((joeljose@thomsonreuters.com))

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