11 Best Crude Oil Stocks To Buy Right Now

3. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Holders: 85

ConocoPhillips (NYSE:COP) is one of the largest independent exploration and production companies in the world, specializing in crude oil, natural gas, and natural gas liquids. With operations spanning North America, Europe, Asia, and Australia, the company focuses on developing high-margin, low-cost resources, particularly in key shale basins like the Permian, Eagle Ford, and Bakken. COP also has significant positions in LNG, oil sands, and conventional offshore production, contributing to a diversified asset portfolio. Unlike integrated oil majors, the company is purely upstream, concentrating on production efficiency, technological innovation, and disciplined capital allocation. Crude oil remains the dominant driver of its output and revenue.

ConocoPhillips (NYSE:COP) delivered a strong performance in 2024, achieving above-guidance production growth of 4% YoY on a standalone basis. The company demonstrated robust performance across its portfolio with 5% growth in the Lower 48 and 3% growth in Alaska and international operations. The company achieved a 123% preliminary organic reserve replacement ratio in 2024, with a 3-year average of 131%. A significant strategic move was the acquisition of Marathon in late November, which added high-quality, low-cost supply inventory, with expected synergies of more than $1 billion by the end of 2025. The company generated a trailing 12-month ROCE of 14%, or 15% on a cash-adjusted basis, while returning $9.1 billion to shareholders, representing 45% of operating cash flow.

Looking forward, ConocoPhillips (NYSE:COP) expects to deliver low single-digit production growth in 2025 with a capital budget of $12.9 billion. In the Lower 48, the company plans to reduce capital spending by over 15% YoY while still maintaining low single-digit production growth, primarily due to Marathon acquisition synergies and drilling efficiency gains. The company expects 2025 to be the peak year of long-cycle spending at around $3 billion, followed by project start-ups from 2026 to 2029. Once these projects are online, the company anticipates $3.5 billion of incremental operating cash flow from NFE, Port Arthur, NFS, and Willow projects at $70 WTI, leading to approximately $6 billion of incremental annual sustaining free cash flow relative to 2025. All in all, management expects strong performance if oil prices hold at the current level.