ConocoPhillips Cuts $1B Capex, Visits Venezuela as WTI Hits $100
ConocoPhillips completed Marathon Oil integration, adding Lower 48 assets with $40/bbl breakeven costs and will cut capex by nearly $1 billion to boost free cash flow. Shares are up 39% year-over-year as WTI nears $100/barrel and the company sent a team to Venezuela to evaluate oil and gas opportunities.
1. Marathon Oil Integration Completed
ConocoPhillips finalized its acquisition of Marathon Oil assets in the U.S. Lower 48, adding high-quality, low-cost inventory that supports production at breakeven costs of $40 per barrel of WTI for over 20 years.
2. Capex Reduction Plan
The company targets a nearly $1 billion reduction in capital expenditures and operating costs this year to drive higher free cash flow and strengthen shareholder returns.
3. Share Performance & Valuation
Shares have gained 39% over the past year, outpacing the industry’s 34.6% growth. The stock trades at a trailing EV/EBITDA of 6.62X versus a 5.59X industry average, while 2026 earnings estimates have seen recent downward revisions.
4. Venezuela Evaluation Mission
ConocoPhillips deployed a small team to Venezuela this week to assess prospective oil and gas opportunities, signaling potential expansion into new upstream resources.