ConocoPhillips explores, produces, transports and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG) and natural gas liquids. The company was founded in 2002 and is based in Houston, Texas.
COP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for COP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Conocophillips ranked in the 30th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Conocophillips ended up being:
Conocophillips's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 11.46% of tickers in our DCF set.
Relative to other stocks in its sector (Energy), Conocophillips has a reliance on debt greater than only 20.47% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as COP, try PARR, FTSI, MMP, FET, and PBR.
ConocoPhillips on Wednesday forecast a smaller-than-expected quarterly adjusted loss and said it would resume buying back its shares after a historic collapse in crude prices forced the U.S. oil and gas producer to halt the program in April.
Oil prices have come under pressure again. In the weak and volatile oil price environment, ConocoPhillips (COP) will likely keep drilling activity subdued and will keep a tight lid on capital expenditures. With oil trading near $40 per barrel, I believe ConocoPhillips will likely generate free cash flows which will...
Sarfaraz A. Khan on Seeking Alpha | September 24, 2020
88 Energy has tuned up its Peregrine oil project on Alaska’s lucrative North Slope by using advanced seismic analysis to demonstrate a favourable comparison with its neighbour, the giant Willow oil field operated by major US oil company, ConocoPhillips.