10 Most Profitable Energy Stocks To Invest In

3. ConocoPhillips (NYSE:COP)  

TTM Net Income: $10.69 Billion  

5-Year Net Income CAGR: 8.39%  

Number of Hedge Fund Holders: 72  

ConocoPhillips (NYSE:COP) is one of the largest independent exploration and production companies globally, with operations across North America, Europe, and Asia. The company has a balanced portfolio of conventional and unconventional assets.

In May, ConocoPhillips (NYSE:COP) announced an agreement to acquire Marathon Oil for $22.5 billion, which aims to increase its upstream operations and enhance its earnings and free cash flow potential, particularly in key basins such as the Bakken, Permian, and Eagle Ford. This strategic move has positioned ConocoPhillips (NYSE:COP) for accelerating capital returns, with the company generating $2.1 billion in free cash flow in Q2, of which $1.9 billion was returned to shareholders through stock buybacks and dividends. Furthermore, the company’s upstream operations offer significant earnings potential due to a rise in the petroleum market.

ConocoPhillips’ (NYSE:COP) financial performance is underpinned by its solid production growth, which reached 1,945 MBOED in Q2, representing an 8% year-over-year increase. The company’s average petroleum price of $81.30 per barrel in Q2 was 10% higher than the year-earlier period, which contributed to its solid earnings and free cash flow performance.

The OPEC+ is providing support for petroleum prices, which are trading at around $75 per barrel as of October 5. ConocoPhillips (NYSE:COP) is well-positioned to continue generating strong earnings and free cash flow in the coming quarters. The company has increased its net income over the past 5 years with a CAGR of 8.39%. For the year ended on June 30, ConocoPhillips (NYSE:COP) reported a net income of $10.68 billion. ConocoPhillips (NYSE:COP) offers an attractive opportunity due to its production growth, free cash flow generation, and dividend paying capabilities.