Fly News Breaks for October 11, 2019
Oct 11, 2019 | 06:44 EDT
Goldman Sachs analyst Neil Mehta reiterated his positive view and Buy rating on ConocoPhillips (COP) ahead of the Q3 report from the company. Shares have underperformed peers Exxon (XOM) and Chevron (CVX) by 15% over the last twelve months and lagged the S&P 500 by 27%, noted Mehta, who still sees see significant free cash flow generation power and "robust" capital return potential at Conoco. He believes the upcoming analyst day in November, where he expects the company to share more detail around its longer-term outlook, can be a positive catalyst for shares, Mehta added. He raised his price target on ConocoPhillips shares to $67 from $66.
News For COP From the Last 2 Days
Nov 19, 2019 | 08:57 EST
ConocoPhillips is hosting an analyst and investor meeting to reaffirm its commitment to the returns-focused strategy it launched in 2016. The company will outline the details of a 2020-2029 operating and financial plan, and will provide region and asset reviews of its global portfolio. Highlights of the 10-year plan include: Free cash flow of approximately $50B based on a real West Texas Intermediate price of $50 per barrel and annual capital expenditures averaging less than $7B over the decade; A capital expenditures plan that reflects optimized pace of development within each asset, low capital intensity and overall low-declining base production; Currently announced and planned dispositions, as well as a future 25% dilution of company-operated Alaska assets consistent with the company's historical practice of not funding major-project expenditures at 100%; Resource base of approximately 15B barrels of oil equivalent at less than $40 per barrel WTI average cost of supply; Forecast underlying compound annual production growth averaging over 3%; Projected ordinary dividends of approximately $20B, reflecting growth in the current dividend over the plan period; Projected $30B in share buybacks over the 10-year period, representing almost 50% of current market capitalization; Planned dividends and repurchases funded from free cash flow over life of the plan, representing a combined annual shareholder payout that exceeds our distribution target of more than 30% of cash from operations; Expected growth in return on capital employed of 1-2 percentage points annually and continued balance sheet strength with an expected leverage ratio of net debt to cash from operations of less than one.