1. ConocoPhillips (NYSE:COP)
Average Upside Potential: 27.39%
Number of Hedge Fund Holders: 85
ConocoPhillips (NYSE:COP) is one of the top exploration and production companies. The company has an extensive global portfolio in crude oil, liquefied natural gas (LNG) and natural gas. Its operations span through Canada, Europe, Asia-Pacific and the U.S. shale basins, proving them to be a strong driving force in the LNG market.
The company reported total production of 1,987 million barrels of oil equivalent per day (MBOED) for the year ended December 31, 2024, which was a 3% year-on-year increase. Such an increase was made possible through strong output from the U.S. shale operations and higher LNG volumes.
Accordingly, ConocoPhillips (NYSE:COP)’s cash flow was around $21.3 billion, with support from better commodity prices and efficient capital allocation. However, the company’s net income was reported to be $11.2 billion, down from $18.7 billion in 2023. This decline can be attributed to higher costs as well as expenses related to acquisitions.
Moreover, ConocoPhillips (NYSE:COP) signed a long-term regasification agreement at Belgium’s Zeebrugge LNG terminal and a long-term LNG sales agreement in Asia, in order to bolster its LNG sales. They also hold stakes in LNG producing facilities in Australia and Qatar, indicating the company’s strategic expansion within the LNG sector.
The company also acquired Marathon Oil for $22.5 billion in late 2024 and divested $1.3 billion at the start of 2025 to streamline its portfolio and reduce debt. The divestment includes the sale of its interests in the Ursa and Europa Fields to Shell for $735 million, expected to close by Q2 2025, as well as the sale of $600 million worth of non-core Lower 48 assets. These efforts helped the company achieve its asset disposition target of $2 billion.
Looking ahead, ConocoPhillips (NYSE:COP) is expected to produce in a stable manner through 2025. It is looking to focus on high-return U.S. shale assets and LNG expansion. In light of such efforts, the company wants to hold an optimized portfolio, maintaining a strong cash flow, all set for long-term sustainable growth.
Overall ConocoPhillips (NYSE:COP) ranks first on our list of the Best LNG and LNG Shipping Stocks to Buy According to Analysts. While we acknowledge the potential of COP, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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