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ConocoPhillips (COP) Gains Biden's Support for Willow Project
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ConocoPhillips (COP - Free Report) gained support from President Joe Biden-led administration for the future of its planned Willow oil development on the Alaska North Slope.
The decision is being made as Biden aims to balance his fight against climate change and increase fuel supplies amid soaring commodity prices. The Willow development is expected to produce a huge quantity of oil and significantly contribute to climate change.
In 2020, the Trump administration approved permits for the Willow project. However, the U.S. District Court identified that the project approvals were based on an inaccurate environmental survey. Hence, environmental and native groups filed a lawsuit to stop the company’s planned Willow gravel-road construction and gravel mining.
Notably, the Biden administration has taken a step regarding the controversial drilling project, upsetting climate activists as the project is expected to release massive emissions. In a draft review, the U.S. Bureau of Land Management evaluated five potential alternatives for the project. This includes ConocoPhillips’ plan to build up to five drilling sites, and miles of roads, bridges and pipelines. The draft also considered a simplified version with fewer drill sites and other infrastructure, with less impact on wildlife.
ConocoPhillips is the largest producer of crude oil in Alaska. It has been a leader in oil and gas exploration and development in the state for decades. At its peak, the project is expected to produce more than 180,000 barrels of oil per day and 629 million oil barrels over the course of 30 years.
Moreover, the project could release 278-287 million metric tons of carbon dioxide for 30 years. This is equivalent to the carbon dioxide contribution of 59.9-61.8 million vehicles driven for a year. Environmental groups claimed that the project would destroy Biden’s climate goals of reducing greenhouse gas emissions.
The review involves several options for the final decision, including blocking it, allowing it to proceed or shrinking the project. A decision is yet to be made, given equal consideration to each option.
Company Profile & Price Performance
Headquartered in Houston, TX, ConocoPhillips is a leading upstream energy company.
Shares of COP have underperformed the industry in the past six months. The stock has gained 4.4% compared with the industry’s 9.4% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
ConocoPhillips currently carries a Zack Rank #3 (Hold).
Calgary, Canada-based Cenovus Energy Inc. (CVE - Free Report) is a leading integrated energy firm. With multiple divestments announced last year, Cenovus has reached its asset sale commitment for 2021, making it well-positioned to focus on high-return opportunities in the portfolio.
Cenovus has a strong focus on returning capital to shareholders. The company increased the quarterly base dividend to 10.5 Canadian cents per share, suggesting a 200% increase from 3.5 Canadian cents per share. This year’s commitment to grow shareholders’ returns comprises the plan to buy back up to 146.5 million common shares.
BP plc (BP - Free Report) is a fully integrated energy company, with a strong focus on renewable energy. The British energy giant added that its target of adding a net production of 900 thousand barrels of oil equivalent per day by 2021 from the key new upstream projects had been met successfully.
BP announced plans to execute a $2.5-billion share buyback, which is expected to complete before reporting the second-quarter results. The company anticipates buying back $1 billion worth of shares every quarter, considering Brent crude price at $60 per barrel. Also, BP expects to receive $2-3 billion of divestment and other proceeds this year.
Suncor Energy, Inc. (SU - Free Report) is Canada’s premier integrated energy company. In 2021, Suncor reduced net debt by almost C$4 billion and returned the same to shareholders through dividends and share repurchases.
Suncor has cash and cash equivalents of C$2.1 billion. The company’s robust liquidity position will allow it to sustain its dividend, even if oil prices stay lower for longer. SU recently hiked its dividend by 12% to 47 Canadian cents per share (after doubling it previously) and increased the buyback authorization to roughly 10% of its public float.
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ConocoPhillips (COP) Gains Biden's Support for Willow Project
ConocoPhillips (COP - Free Report) gained support from President Joe Biden-led administration for the future of its planned Willow oil development on the Alaska North Slope.
The decision is being made as Biden aims to balance his fight against climate change and increase fuel supplies amid soaring commodity prices. The Willow development is expected to produce a huge quantity of oil and significantly contribute to climate change.
In 2020, the Trump administration approved permits for the Willow project. However, the U.S. District Court identified that the project approvals were based on an inaccurate environmental survey. Hence, environmental and native groups filed a lawsuit to stop the company’s planned Willow gravel-road construction and gravel mining.
Notably, the Biden administration has taken a step regarding the controversial drilling project, upsetting climate activists as the project is expected to release massive emissions. In a draft review, the U.S. Bureau of Land Management evaluated five potential alternatives for the project. This includes ConocoPhillips’ plan to build up to five drilling sites, and miles of roads, bridges and pipelines. The draft also considered a simplified version with fewer drill sites and other infrastructure, with less impact on wildlife.
ConocoPhillips is the largest producer of crude oil in Alaska. It has been a leader in oil and gas exploration and development in the state for decades. At its peak, the project is expected to produce more than 180,000 barrels of oil per day and 629 million oil barrels over the course of 30 years.
Moreover, the project could release 278-287 million metric tons of carbon dioxide for 30 years. This is equivalent to the carbon dioxide contribution of 59.9-61.8 million vehicles driven for a year. Environmental groups claimed that the project would destroy Biden’s climate goals of reducing greenhouse gas emissions.
The review involves several options for the final decision, including blocking it, allowing it to proceed or shrinking the project. A decision is yet to be made, given equal consideration to each option.
Company Profile & Price Performance
Headquartered in Houston, TX, ConocoPhillips is a leading upstream energy company.
Shares of COP have underperformed the industry in the past six months. The stock has gained 4.4% compared with the industry’s 9.4% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
ConocoPhillips currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following stocks that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Calgary, Canada-based Cenovus Energy Inc. (CVE - Free Report) is a leading integrated energy firm. With multiple divestments announced last year, Cenovus has reached its asset sale commitment for 2021, making it well-positioned to focus on high-return opportunities in the portfolio.
Cenovus has a strong focus on returning capital to shareholders. The company increased the quarterly base dividend to 10.5 Canadian cents per share, suggesting a 200% increase from 3.5 Canadian cents per share. This year’s commitment to grow shareholders’ returns comprises the plan to buy back up to 146.5 million common shares.
BP plc (BP - Free Report) is a fully integrated energy company, with a strong focus on renewable energy. The British energy giant added that its target of adding a net production of 900 thousand barrels of oil equivalent per day by 2021 from the key new upstream projects had been met successfully.
BP announced plans to execute a $2.5-billion share buyback, which is expected to complete before reporting the second-quarter results. The company anticipates buying back $1 billion worth of shares every quarter, considering Brent crude price at $60 per barrel. Also, BP expects to receive $2-3 billion of divestment and other proceeds this year.
Suncor Energy, Inc. (SU - Free Report) is Canada’s premier integrated energy company. In 2021, Suncor reduced net debt by almost C$4 billion and returned the same to shareholders through dividends and share repurchases.
Suncor has cash and cash equivalents of C$2.1 billion. The company’s robust liquidity position will allow it to sustain its dividend, even if oil prices stay lower for longer. SU recently hiked its dividend by 12% to 47 Canadian cents per share (after doubling it previously) and increased the buyback authorization to roughly 10% of its public float.