ConocoPhillips Target Raised to $112 as $1B Cost Cuts Progress
Roth Capital raised ConocoPhillips’ price objective to $112 from $105 post-Q4 and confirmed $1B of cost cuts, forecasting 2027 volumes up 2% and oil output up 1%. ConocoPhillips realized $42.46/barrel in Q4, down 19%, and has sold $3.2B of assets toward a $5B divestment goal.
1. Roth Capital Raises Price Objective
On February 5, Roth Capital increased its price objective on ConocoPhillips to $112 from $105 and reaffirmed its Buy rating following the company’s fourth-quarter results.
2. $1B Cost-Cutting Initiative and Guidance
ConocoPhillips plans to cut capital and operating costs by $1 billion in 2026, building on prior synergies, and expects 2027 production growth of approximately 2% overall and 1% for oil volumes.
3. Q4 Realized Prices and Asset Divestment
During Q4, the company realized an average price of $42.46 per barrel of oil equivalent, down 19% year-over-year, and completed $3.2 billion in asset sales toward a targeted $5 billion divestment goal by end-2026.
4. Operational Streamlining and Workforce Reduction
As part of its restructuring, ConocoPhillips is streamlining operations with plans to reduce its workforce by about 20-25% and focusing on core assets across Alaska, the Lower 48 and the Gulf of Mexico.