ConocoPhillips

ConocoPhillips has sold 43,000 net acres in South Texas for $1.2 billion, part of the company's ongoing asset pruning after its Marathon Oil acquisition. NGP-backed Ensign Natural Resources II bought the Eagle Ford position in a July transaction. For mineral owners underneath those acres, the operator may change while the royalty checks keep coming. Under Social Security Administration guidance, nonoperating oil and gas royalties generally do not count as earnings under the retirement earnings test, so a mineral owner can collect royalties and early benefits at the same time, while a working interest that shares in well development costs is treated as a business and can be subject to the test. Royalties remain taxable ordinary income and can push up to 85% of Social Security benefits into taxable income above the $34,000 threshold for single filers.

Occidental Petroleum posted the largest analyst estimate beat among the five diversified upstream exploration and production stocks tracked, reporting $8.33 billion in revenue, up 57.1% year on year and 15.3% above consensus. As a group, the five diversified upstream E&P stocks beat analysts' consensus revenue estimates by 9.7% in an exceptional second quarter, and their share prices have risen 15.6% on average since the results. ExxonMobil reported $116 billion in revenue, up 42.3% year on year and 6.8% above expectations, while Chevron, the weakest performer against estimates in the group, reported $70.06 billion, up 56.3% and 6.2% ahead of consensus. Devon Energy delivered the fastest revenue growth among its peers at 67.4%, reaching $6.89 billion and topping expectations by 10.3%, and ConocoPhillips reported $19.52 billion, up 32.4% and 9.6% above estimates, the slowest growth in the group. Occidental Petroleum shares are up 17.9% since reporting and trade at $63.45, ExxonMobil is up 7.9% at $169.40, Chevron is up 13.1% at $217.43, Devon Energy is up 16.5% at $51.34, and ConocoPhillips is up 22.8% at $141.27.

U.S. stock futures fell early Tuesday, with Dow futures down 0.8%, S&P 500 futures down 0.3%, and Nasdaq-100 futures down 0.1%, as markets reopened after the Labor Day holiday amid U.S.-Iran tensions and U.S.-Canada trade disputes. Energy stocks rose in premarket trading after Iran warned it could target Gulf oil and gas infrastructure, with Exxon Mobil up 1.8%, Chevron up 1.7%, ConocoPhillips up 1.6%, Diamondback Energy and Marathon Petroleum each up 1.1%, and Valero Energy up 1.6%. Eaton shares gained more than 3% after UBS upgraded the stock to Buy from Neutral and raised its price target to $515 from $450, citing strong sales growth and expected margin improvement. Everpure rose 2.5% after being added to the S&P 500, replacing Builders FirstSource, while Shake Shack rose about 1% after RBC initiated coverage with an Outperform rating and an $89 price target. Old Dominion Freight Line climbed 1.3% after reporting revenue per day rose 12.4% in August compared with the same month last year.

The U.S. government's agreement with Venezuela, touted by President Trump as "the biggest oil deal in world history," grants American access to 65 billion barrels of proven Venezuelan reserves through 100-year concessions across 17 oilfields, brokered with North American Blue Energy Partners. The deal, which includes a 25-year cooperation framework, aims to more than double U.S. oil reserves and lower gasoline prices, while Chevron, ExxonMobil, ConocoPhillips, SLB, and Halliburton are positioned to benefit from an estimated $100 billion in infrastructure investment targeting 1.5 million barrels per day. For investors, energy ETFs like XLE, VDE, OIH, and IYE offer exposure to these beneficiaries, with year-to-date gains ranging from 42.2% to 50.7%.

U.S.-listed energy stocks climbed in premarket trading Monday, tracking a more than 2% jump in oil prices after American forces struck an Iranian island in the Strait of Hormuz and Tehran retaliated. Brent crude rose 3.5% to $91.20 a barrel, while U.S. West Texas Intermediate also gained 3.5% to $86.30 a barrel. In turn, energy stocks rallied, with Chevron up 1.7%, Exxon Mobil rising 1.5%, Occidental Petroleum advancing 1.8%, ConocoPhillips gaining 1.3%, Halliburton climbing 2.5%, and SLB rising 1.7%. Refiners also participated, with Marathon Petroleum up 0.6% and Phillips 66 gaining 1%. U.S. forces struck two missile launchers on Iran's Larak Island on Sunday, marking the first confirmed American strikes on Iran since late July, and Iran's Revolutionary Guards responded by striking two U.S. air bases in Jordan. President Trump added to the confusion with a social media post claiming Iran's Kharg Island energy hub was being "blown to smithereens," but Iran denied any strike occurred and said oil operations there were continuing normally. Efforts to end the conflict remain stalled as international mediators work to reopen the Strait of Hormuz, a chokepoint that carried roughly one-fifth of global oil supply before fighting broke out at the end of February. U.S. Treasury Secretary Scott Bessent told Reuters that Washington is likely to roll out new secondary sanctions against Iran on a weekly basis going forward.

The U.S. is in discussions with Venezuela to take an ownership stake in its vast oil resources, a deal that would more than double America's oil reserves, according to Axios. The proposed agreement would give the U.S. a stake in at least 17 of Venezuela's most promising oil and gas fields, holding an estimated 90 billion barrels of proven reserves—nearly double the U.S.'s current reserves and less than a third of Venezuela's total, which at around 300 billion barrels are the world's largest. Chevron, which has operated in Venezuela for over a century, is the clear frontrunner, having recently consolidated its heavy oil position and boosted output to over 250,000 barrels per day, with plans to grow production by 50% within two years. ExxonMobil and ConocoPhillips, which left Venezuela after nationalization, are evaluating a return, with ConocoPhillips seeking to collect $12 billion in arbitration awards and Exxon reportedly in talks to acquire rights to up to six fields. While the deal is not final, it could be a needle-mover for these oil companies.

The owners of the 800-mile Trans-Alaska Pipeline System are seeking to renew its federal land authorization more than seven years before it expires, aiming to ensure the Trump administration makes the determination rather than his successor. The Interior Department has launched a formal review of the reauthorization application from Alyeska Pipeline Service Company, which operates the pipeline on behalf of owners Hilcorp Energy, ConocoPhillips, and Exxon Mobil. If successful, the bid would result in 30 more years of federal land authorizations, offering more certainty for a critical piece of U.S. oil infrastructure. The effort coincides with the Interior Department's preparation to ease environmental review requirements for some oil and gas exploration in Alaska's National Petroleum Reserve, part of Trump's push to speed energy development in the Arctic.

ConocoPhillips' head of global operations Kirk Johnson said Tuesday at the ONS conference in Norway that drilling for more oil and gas in Arctic regions is inevitable despite criticism of exploring in harsh northern environments. Johnson said activity is going to move north, citing resource development and chasing new opportunities, and that Norway's continued opportunity to expand north makes it an inevitability for the company. Norway's Energy Minister Terje Aasland told Reuters this week the country will continue developing Barents Sea resources despite EU support for a moratorium on Arctic hydrocarbons. Johnson also said Alaska's Willow project is about 50% complete and that the time from exploration and appraisal to development could take up to 15 years.

Iraq is seeking to more than double its oil production to between 8 million and 10 million barrels per day within six years, and three major U.S. energy companies are positioned to benefit. Chevron has signed memorandums of understanding for the West Qurna 2 and Nassiriya oil fields, with Iraq wanting Chevron to nearly double West Qurna 2's production to between 750,000 and 800,000 barrels per day. ConocoPhillips recently agreed to buy a 42% interest in BP Energy Company of Kirkuk, supporting redevelopment of four large-scale fields in northern Iraq, and is part of a consortium potentially developing the Akkas gas field. ExxonMobil signed an agreement last year to develop the Majnoon oilfield, which holds an estimated 38 billion barrels of oil in place, after leaving Iraq in 2023.

Diversified upstream E&P stocks delivered a strong second quarter, with the five companies tracked beating analysts' consensus revenue estimates by 9.7% as a group. ExxonMobil reported revenues of $116 billion, up 42.3% year over year and 6.8% above expectations, while Occidental Petroleum posted the biggest beat at 15.3% with revenues of $8.33 billion, up 57.1%. Chevron's revenues of $70.06 billion rose 56.3% and beat by 6.2%, Devon Energy's $6.89 billion was up 67.4% and beat by 10.3%, and ConocoPhillips' $19.52 billion rose 32.4% and beat by 9.6%. Share prices for the group have risen 10.9% on average since the latest earnings results.

ConocoPhillips reported its best quarterly results since 2022 and announced that CFO Andy O'Brien will succeed Ryan Lance as CEO on September 1. Adjusted profit came in at $3.24 a share, well ahead of the $2.88 Wall Street expected, and revenue jumped 32.4% to $19.5 billion even as production slipped nearly 6% to 2.25 million barrels of oil equivalent per day. O'Brien inherits a $7 billion free cash flow growth pledge through 2029 that depends heavily on the Willow oil project in Alaska, whose price tag has climbed to $9 billion. Rival Exxon Mobil posted its biggest quarterly profit in four years at $14.7 billion, up 67% from the first quarter, but adjusted earnings of $3.52 a share missed the $3.60 estimate and its shares fell 1%. Hedge fund data showed ConocoPhillips holders rising to 74 from 65, while Exxon holders slipped to 94 from 98.

ConocoPhillips delivered second-quarter results that exceeded Wall Street expectations, with revenue of $19.52 billion versus analyst estimates of $17.81 billion and adjusted EPS of $3.24 versus $2.92. CEO Ryan Lance, in his final quarter before retirement, highlighted record Permian Basin production and completion of the company's $5 billion disposition target. Analyst questions focused on the leadership transition to incoming CEO Andrew O'Brien, production ramp in Qatar, capital expenditure trajectory after Willow, and the strategic rationale for expanding LNG offtake in Indonesia. O'Brien confirmed that peak capital expenditures are behind and capital needs will decrease, supporting free cash flow inflection.

ConocoPhillips reported second-quarter 2026 results that exceeded Wall Street expectations, with revenue rising 32.4% year on year to $19.52 billion and adjusted earnings per share of $3.24, a 10.8% beat. The company also announced that CEO Ryan Lance will retire in September, with Andrew O'Brien stepping in as President and CEO, and Connie Haines Welsh joining as Chief Financial Officer. Operational highlights included record Permian Basin production surpassing 900,000 barrels of oil equivalent per day, the early completion of a $5 billion asset disposition program, and the securing of two new LNG offtake agreements that bring total offtake to 12 million tonnes per annum. Management expects new low-cost supply opportunities in Iraq and Syria, progress at the Willow project in Alaska, and a growing LNG portfolio to drive a significant free cash flow increase by 2029.

All 12 S&P 500 energy companies that reported earnings this week beat Wall Street's EPS estimates, while nine topped revenue expectations and three missed. Occidental Petroleum posted EPS of $2.40, beating by $0.55, and revenue of $8.33 billion, exceeding forecasts by $1.08 billion. ConocoPhillips reported EPS of $3.24, a $0.30 beat, on revenue of $19.52 billion that missed estimates. Devon Energy delivered EPS of $1.57, beating by $0.16, with revenue of $7.42 billion surpassing expectations by $1.49 billion. ONEOK's EPS of $1.53 beat by $0.13 on revenue of $12.05 billion, a $3.10 billion beat, prompting raised full-year 2026 guidance. Phillips 66 posted EPS of $9.41, a $1.91 beat, on revenue of $52.04 billion, exceeding estimates by $8.00 billion. EOG Resources reported EPS of $5.07, beating by $0.10, with revenue of $8.62 billion topping expectations by $821.75 million. The sector's strong cash flows, disciplined spending, and shareholder returns continued to support performance, with the State Street Energy Select Sector SPDR ETF gaining 28.27% year-to-date, outpacing the broader S&P 500's 12.63% return.

Iran's Parliament is reviewing a bill to permanently ban US, Israeli and other hostile vessels from the Strait of Hormuz, backed by drone and missile strikes in the strait, even as US President Trump claimed a final deal is close. ICE Brent is set to close the week at $83 per barrel. Tehran and Muscat have agreed on coordinates for a proposed shipping corridor giving Iran control over Gulf-bound vessels, but Iranian officials cautioned that key details remain unresolved and the deal alone would not guarantee security.

Several major earnings reports and key labor data are set for Thursday, August 6. Before the market opens, ConocoPhillips will report second-quarter results, with attention on the integration of Marathon Oil, while stronger crude prices are expected to support pricing and production near the upper end of guidance. Warner Bros. Discovery also reports before the open, with analysts expecting the loss of NBA programming to weigh on results, including a roughly 20% decline in linear advertising, though streaming remains a bright spot and the pending Paramount merger will likely dominate the conversation. After the closing bell, Airbnb announces quarterly results, with its push to add boutique and independent hotels potentially accelerating supply growth, but softer consumer sentiment and rising travel costs remain key risks, and room nights are expected to grow with the World Cup likely providing a boost. In the middle of these earnings, weekly initial jobless claims are forecast to rise compared to the prior week, ahead of Friday's full jobs report.

ConocoPhillips reported second-quarter 2026 earnings of $3.9 billion, or $3.23 per share, and declared a third-quarter ordinary dividend of $0.84 per share. Adjusted earnings were $4.0 billion, or $3.24 per share, compared with $1.8 billion, or $1.42 per share, in the same period last year. The company generated cash from operations of $7.2 billion and increased total shareholder distributions to $3.0 billion, including $2.0 billion in share repurchases and $1.0 billion in dividends. ConocoPhillips achieved its $5 billion asset disposition target ahead of schedule, signed agreements to sell noncore Lower 48 assets for $1.7 billion, and advanced its LNG strategy with additional offtake agreements bringing total LNG offtake to 12 million tonnes per annum. Full-year guidance items were reaffirmed, and third-quarter production is expected to be between 2.29 and 2.32 million barrels of oil equivalent per day.

Shares of Chord Energy, Murphy Oil, Genesis Energy, ExxonMobil, and ConocoPhillips jumped in afternoon trading after renewed Middle East hostilities and a larger-than-expected drop in US crude inventories heightened concerns over oil supply. Crude oil futures rose more than 6%, snapping a three-day losing streak, as the collapse of a four-day truce between Iran and the US led to an Iranian missile attack on a US base and tanker fire in the Strait of Hormuz, prompting retaliatory strikes by US and Saudi forces on Iran-aligned militias in Iraq. Brent crude climbed above $90 a barrel and West Texas Intermediate surpassed $84 a barrel, while the American Petroleum Institute estimated that US commercial crude stockpiles fell by 3.3 million barrels in the week ending July 24, signaling tightening supply. Among the movers, Chord Energy gained 5.4%, Murphy Oil rose 5.2%, Genesis Energy added 3.7%, ExxonMobil advanced 3.1%, and ConocoPhillips increased 3.8%.

The Dow Jones Industrial Average fell more than 1,000 points on Wednesday after the Federal Reserve decided to keep interest rates steady while U.S. oil neared $85 per barrel. In the last five years, the blue-chip index has closed down more than 1,000 points nine times, and historically it tends to fall in the week after such a large decline before performing well in the one-month and three-month periods that follow. Three of those drops occurred amid fallout from President Donald Trump's liberation day tariffs in April 2025, four happened during the 2022 inflation surge and Fed rate hikes, and the other two were in August and December 2024. Currently, investors are worried about the Fed's decision to stay on the sidelines at its July 2026 meeting amid above-target inflation, while oil prices rose again after Trump promised to hit Iran in retaliation for a surprise attack on American forces.

U.S. stocks fell sharply, with the S&P 500 sliding to a one-month low and the Nasdaq 100 sinking to a three-month low, as chipmakers and AI infrastructure stocks sold off and crude oil prices surged more than 7%. The Philadelphia Semiconductor Index dropped over 3% to a two-and-a-half-month low, with Nebius Group down more than 9%, KLA Corp and Sandisk down more than 7%, and Applied Materials, NXP Semiconductors, and ARM Holdings down more than 5%. Crude oil jumped after the Islamic Revolutionary Guard Corps said it targeted a U.S. airbase in Jordan with ballistic missiles and claimed to have halted three tankers in the Strait of Hormuz, while the U.S. and Saudi Arabia launched a joint attack on Iran-aligned terrorists in Iraq. The Federal Reserve kept interest rates unchanged in a 9-3 decision, and markets awaited earnings from Microsoft and Meta Platforms after the close. The 10-year Treasury yield rose 4 basis points to 4.64%, and energy stocks gained, with Diamondback Energy up more than 4% and ConocoPhillips, APA Corp, Devon Energy, ExxonMobil, and Occidental Petroleum up more than 3%.

An analysis identifies ConocoPhillips and Texas Pacific Land as energy stocks capable of generating sustainable market-beating returns, while Kosmos Energy is flagged as one to avoid. ConocoPhillips, with a market cap of $140.8 billion and revenue of $60.5 billion, is praised for its 8% annual revenue growth over the last ten years and strong free cash flow. Texas Pacific Land, valued at $27.36 billion, owns roughly 868,000 acres in the Permian Basin and earns revenue from oil and gas royalties, water services, and land leases. In contrast, Kosmos Energy, with a market cap of $1.45 billion and revenue of $1.37 billion, faces concerns over declining efficiency, negative free cash flow, and limited scale. The energy sector has returned 12.6% over the past six months, outperforming the S&P 500 by 6.4 percentage points.

OPEC+ is expected to pause its phased oil output increases after September, ending the rollback of a 1.65 million barrel per day supply cut agreed in 2023. Core members including Saudi Arabia, Russia, and Iraq will meet early next month to set a September target, planning a 188,000 barrel per day increase that matches recent monthly hikes. The group has been raising quotas to offset supply disruptions from the Strait of Hormuz, but several members struggle to get oil to market, with Iraq's output plunging from 4 million to around 1.4 million barrels per day. The pause could keep crude prices elevated, with Goldman Sachs warning oil could top $120 a barrel near term, and may drive Iraq to leave OPEC, potentially benefiting Chevron and ConocoPhillips, which have interests in Iraqi oil fields.

ConocoPhillips and DT Midstream are two energy stocks that investors may want to consider buying before July ends, according to an analysis by The Motley Fool. The largest energy-focused ETF rose nearly 11% for the month ending July 27, while the S&P 500 gained less than 1%, as renewed tensions in Iran boosted the sector. ConocoPhillips, an upstream company, is seen as a riskier near-term bet due to its correlation with oil prices, but it has a strong portfolio including LNG assets and projects that could add $3 billion in cash flow by 2028 and $7 billion by 2029. DT Midstream, a pipeline operator with a $3.4 billion backlog and a 2.4% dividend yield, offers less direct exposure to commodity prices and has delivered a 168% share-price gain over three years.

U.S. energy shares rose in premarket trading on Thursday after Houthi attacks on two Saudi oil tankers pushed Brent crude briefly to $100 a barrel, intensifying Middle East tensions and heightening concerns over global oil supply disruptions. Brent crude futures rose as much as 6.3% to $100 per barrel for the first time since May 26, while U.S. West Texas Intermediate crude was up 5.2% at $91.30 per barrel. Shares of Exxon Mobil and Chevron rose 1.6% and 1.7%, respectively, and Diamondback Energy, Devon Energy, ConocoPhillips, and Occidental Petroleum were up between 2% and 2.5%. Refiners Valero Energy, Marathon Petroleum, and Phillips 66 also gained between 2.1% and 2.6%. UBS analyst Giovanni Staunovo said the production recovery process in the Middle East is expected to be slower than the market anticipates, keeping the oil market tight and prices supported.

ConocoPhillips has agreed to acquire a 42% stake in BP Energy Company of Kirkuk, joining the redevelopment of major oilfields in northern Iraq. The agreement was formalized during Iraqi Prime Minister Ali Al-Zaidi's visit to Washington, DC. BP ECKL holds the development and production contract for the Baba and Avanah domes of the Kirkuk oilfield, along with the Bai Hassan, Jambur and Khabbaz fields, with an initial phase covering more than three billion barrels of oil equivalent in gross recoverable resources. BP will remain the majority shareholder and the planned transition of operatorship to an unincorporated organization mainly composed of Northern Oil Company and North Gas Company personnel is unchanged. The transaction is expected to close by year-end with an effective date of 1 July 2026, subject to regulatory approval.

ConocoPhillips joined dozens of US companies in signing some $60 billion in deals to lift the Iraqi economy during Iraqi Prime Minister Ali al-Zaidi's visit to Washington. The agreements span energy, healthcare, finance, and tech, with ConocoPhillips agreeing to acquire a 42% stake in BP's giant Kirkuk oil-field complex, which holds more than 3 billion barrels of oil equivalent plus additional exploration potential. Barclays estimated the purchase price at about $400 million, though terms were not disclosed. Other signatories include Halliburton, SpaceX's Starlink, KBR, and JPMorgan Chase, though many of the agreements are preliminary or in early phases. The deals come as the Trump administration seeks to gain influence with Iraq and encourage the disarmament of Iran-backed militias.

Escalating U.S.-Iran hostilities, attacks on critical infrastructure, and near-halted Hormuz tanker traffic are fueling expectations of higher oil prices. Chinese crude purchases plunged 41% year-on-year in June to 7.12 million barrels per day, the lowest monthly reading since October 2016, as the Gulf war disrupted Middle Eastern supplies and weakening domestic demand curbed buying in the world's largest oil-importing nation. The US military has redirected two commercial vessels since reinstating its naval blockade of Iranian ports, reviving an enforcement campaign that turned back 140 ships and disabled nine others between April and June but failed to stop Iranian crude loadings entirely. IEA chief Fatih Birol warned the global economy could face serious trouble unless the Strait of Hormuz fully reopens within weeks, with disrupted flows of oil, gas and fertilizer posing the greatest threat to import-dependent Asian economies such as Pakistan or India. India has banned the deployment of its seafarers on ships transiting the Strait of Hormuz after two nationals were killed in regional attacks, even as unions warn that more than 15,000 Indian crew members remain stranded west of the embattled waterway.

Netflix dropped more than 10% in premarket trading after its second-quarter results failed to impress investors, while Intuitive Surgical fell more than 11% despite beating estimates. Netflix earned 80 cents per share on revenue of $12.56 billion, compared to analyst expectations of 79 cents per share on $12.59 billion, and said it would reduce the frequency of its engagement reports. Intuitive Surgical posted adjusted earnings of $2.80 per share on $2.89 billion in revenue, above forecasts of $2.50 per share on $2.82 billion, but maintained its full-year procedure growth outlook of around 14%. Alphabet slid 1.5%, extending Thursday's 4.5% drop after a report that Google is months behind on its latest Gemini AI model. SpaceX fell more than 3.5% after aborting a Starship launch due to engine issues, with CEO Elon Musk saying another attempt would come in days. Verizon Communications rose 1% on plans to sell 274 retail stores and cut about 500 jobs as part of restructuring. BP and ConocoPhillips each gained more than 1% on news they will announce billions of dollars in new Iraq investments. Truist Financial added 1.4% after beating earnings estimates with $1.23 per share versus the $1.08 consensus. Alcoa slipped 0.5% despite topping forecasts with adjusted earnings of $2.12 per share on $3.97 billion in revenue, while lowering its 2026 alumina production outlook. Software stocks broadly declined, with the iShares Expanded Tech-Software Sector ETF down more than 1.5% and names like Salesforce, Palantir, ServiceNow, and Microsoft all lower. Memory stocks continued to unwind, as the Roundhill Memory ETF fell more than 3% and was on track for a 19% weekly loss, with Western Digital, Micron, and Seagate all declining. Fifth Third Bancorp edged higher even after a slight earnings miss, as net interest income rose 48% year-over-year and met expectations.