11 Best Undervalued Energy Stocks to Invest in Now

2. ConocoPhillips (NYSE:COP)

Forward P/E Ratio as of April 10: 10.98

Number of Hedge Fund Holders: 86

ConocoPhillips (NYSE:COP) explores, produces, transports, and markets crude oil, bitumen, natural gas, LNG, and natural gas liquids. Its segments include Alaska, Lower 48, Canada, Europe, Middle East & North Africa, Asia Pacific, and International. Its portfolio includes unconventional plays, conventional assets, global LNG developments, oil sands assets, and an inventory of global exploration prospects.

The company’s Lower 48 segment delivered a 5% production growth year-over-year for the full year 2024. This contributed to the company’s overall 4% production growth. In Q4, the Lower 48 produced 1,308,000 barrels of oil equivalent per day. By basin, the production breakdown was 833,000 barrels in the Permian, 296,000 barrels in the Eagle Ford, and 151,000 barrels in the Bakken.

The acquisition of Marathon in late November 2024 also enhanced the Lower 48 portfolio and added high-quality and low-cost supply inventory. ConocoPhillips (NYSE:COP) expects to achieve over $1 billion of run-rate synergies by the end of 2025. A substantial portion of this is already reflected in the capital guidance. The company also plans to reduce capital spending in the Lower 48 by ~$1.4 billion.