ConocoPhillips (NYSE:COP) stock rose Monday after the company signed a gas sales precedent agreement with Glenfarne Group to support the Alaska LNG project.
Alaska LNG Agreement Supports Energy Security
ConocoPhillips and Glenfarne Alaska LNG LLC, a subsidiary of Glenfarne Group, have signed a gas sales precedent agreement to supply natural gas from Alaska’s North Slope for Phase One of the Alaska LNG project.
The 30-year agreement gives Alaska LNG enough committed natural gas volumes to support a final investment decision for Phase One and meet the state’s projected energy needs.
Phase One includes a 739-mile pipeline aimed at strengthening Alaska’s long-term energy security as Cook Inlet production declines. Phase Two will add LNG export facilities in Nikiski.
With the agreement, Alaska LNG now has supply commitments from all major North Slope producers, including Exxon Mobil Corporation (NYSE:XOM) , Hilcorp Alaska, and Great Bear Pantheon LLC, a subsidiary of Pantheon Resources.
Glenfarne owns 75% of the project, while the State of Alaska owns the remaining 25% through the Alaska Gasline Development Corporation.
Quarterly Earnings Top Wall Street Estimates
Last month, ConocoPhillips reported first-quarter earnings of $2.2 billion, or $1.78 per share, compared with $2.8 billion, or $2.23 per share, a year earlier. Adjusted earnings were $1.89 per share, topping analysts’ estimates of $1.64 per share. Revenue totaled $16.05 billion, above expectations of $15.55 billion.
The company said it expects second-quarter production between 2.185 million and 2.215 million barrels of oil equivalent per day and reaffirmed full-year production guidance of 2.295 million to 2.325 million BOE per day. ConocoPhillips also plans to add one rig in the Permian Basin during the second half of 2026.
Cost Savings And Operational Outlook Remain In Focus
Management said the impact from the Middle East conflict was largely limited to QatarEnergy’s N3 project, while the rest of its portfolio remained unaffected. The company also reiterated its target of achieving a $1 billion run-rate cost savings goal by the end of 2026.
ConocoPhillips expects global oil demand to be broadly flat year over year, with potential downside risk tied to ongoing Middle East tensions. The company also anticipates higher share repurchases in the second quarter.
Analysts Maintain Positive View On ConocoPhillips Stock
The stock carries a Buy rating with an average price forecast of $128.06. Recent analyst moves include:
- Wells Fargo: Overweight (Raises forecast to $183.00) (April 9)
- Barclays: Overweight (Raises forecast to $136.00) (May 1)
- Scotiabank: Sector Perform (Raises forecast to $125.00) (April 22)
How COP Ranks On Value, Growth And Momentum Versus Peers
Below is the Benzinga Edge scorecard for ConocoPhillips, highlighting its strengths and weaknesses compared to the broader market:
- Value Rank: 76.1 — The stock is considered a strong value relative to its peers.
- Growth Rank: 68 — Indicates moderate growth potential.
- Momentum Rank: 80.63 — Stock is outperforming the broader market.
The Verdict: ConocoPhillips’ Benzinga Edge signal reveals a balanced scorecard with strong momentum and value indicators. This positions the company well for continued growth and stability in the energy sector.
COP ETF Exposure: Top Holdings And Passive Flow Risk
- State Street Energy Select Sector SPDR ETF (NYSE:XLE): 7.19% Weight
- The Energy Select Sector SPDR Fund (NYSE:XLE): 7.21% Weight
- Eagle Capital Select Equity ETF (NYSE:EAGL): 7.36% Weight
Significance: Because COP carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
COP Price Action: ConocoPhillips shares were up 1.49% at $124.24 at the time of publication on Monday, according to Benzinga Pro data.
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