COP

SLB N.V. SLB reported third-quarter 2026 adjusted earnings per share (EPS) of 64 cents, beating the Zacks Consensus Estimate of 62 cents by 3.2%. The bottom line declined 7.2% from 69 cents in the year-ago quarter. The oilfield services giant recorded quarterly revenues of $9.45 billion, topping the consensus estimate of $9.29 billion by 1.7%. The top line increased 5.8% year over year. Better-than-expected results were supported by strong Production Systems performance, ChampionX contributions and recovering Middle East activity. Digital annualized recurring revenues reached $1.04 billion, up 13% year over year. SLB Limited price-consensus-eps-surprise-chart | SLB Limited Quote International revenues increased 1% year over year to $6.99 billion. North America revenues rose 24% to $2.40 billion, supported by stronger unconventional activity and ChampionX contributions. Excluding the acquisition, North America revenues increased 13%. Latin America revenues rose 18% year over year to $1.75 billion, supported by stronger offshore activity in Brazil, Guyana and Mexico. Europe and Africa revenues remained largely flat at $2.44 billion, reflecting mixed activity across regional markets. Middle East and Asia revenues declined 6% year over year to $2.81 billion due to conflict-related disruptions. However, revenues increased 9% sequentially, supported by recovering activity in Iraq, Kuwait, Oman, Saudi Arabia and other regional markets. Digital revenues increased 5% year over year to $693 million from $658 million. Growth was driven by stronger Digital Operations activity and higher Platforms and Applications sales, partially offset by reduced Professional Services and Digital Exploration revenues. The division's pretax operating income increased 4% year over year to $194 million. However, pretax operating margin contracted 36 basis points to 28%, reflecting lower exploration data license sales and transfer fees. Improved profitability across Digital Operations and Platforms and Applications partially offset the pressure. Reservoir Performance revenues declined 3% year over year to $1.63 billion. Reduced Middle East activity and weaker unconventional operations in Argentina affected performance. Pretax operating income fell 15% to $266 million, while the corresponding margin contracted 223 basis points to 16.3%. Well Construction revenues decreased 3% year over year to $2.89 billion, primarily due to lingering Middle East disruptions. Strong offshore drilling activity across Latin America, Europe and Africa partially offset the decline. Pretax operating income dropped 15% to $475 million. However, both divisions recorded sequential revenue increases of 5%, reflecting a recovery in Middle East drilling, evaluation and intervention activity. Production Systems revenues increased 15% year over year to $4 billion, driven primarily by ChampionX's production chemicals and artificial lift businesses. These operations contributed $950 million in quarterly revenues compared with $575 million in the year-ago period. Excluding ChampionX, divisional revenues increased 5% year over year, supported by stronger SLB OneSubsea, valves and completions activity. Pretax operating income increased 16% to $646 million. The segment's pretax operating margin remained broadly stable at 16.1%, supported by improved offshore profitability and contributions from ChampionX. Net income attributable to SLB totaled $735 million, down 1% year over year. GAAP earnings declined to 49 cents per share from 50 cents in the prior-year quarter. Adjusted EBITDA was $2.07 billion, essentially flat year over year. The adjusted EBITDA margin contracted 121 basis points to 21.9%, reflecting continued pressure from lower Middle East activity despite sequential operational improvements. Pretax segment operating income decreased 3% to $1.58 billion, while the corresponding margin contracted 153 basis points to 16.7%. Cash provided by operating activities totaled $1.51 billion in the third quarter, while free cash flow reached $828 million. Capital expenditures were $485 million. As of Sep. 30, 2026, SLB had cash and short-term investments of $3.55 billion, long-term debt of $11.15 billion and net debt of $9.25 billion. The company repurchased 12.9 million shares for $656 million during the quarter. Its board approved a quarterly cash dividend of 29.5 cents per share, payable Jan. 7, 2027, to shareholders of record as of Dec. 2, 2026. Data Center Solutions revenues surged 76% year over year to $230 million, reflecting growing demand for critical infrastructure and modular data center solutions. SLB agreed to acquire Kelvion for approximately $3.4 billion in cash, including the assumption of roughly $700 million in debt. The transaction is expected to close in the first half of 2027. Management anticipates stronger international activity in 2027, supported by deepwater developments, increased Venezuelan operations and expanding digital opportunities. The company maintained its full-year 2026 capital investment guidance at approximately $2.5 billion. SLB currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks from the energy sector that are yet to release their third-quarter 2026 earnings are Baker Hughes Company BKR, ConocoPhillips COP) and Equinor ASA EQNR. BKR, COP and EQNR currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today's Zacks #1 Rank stocks here. Baker Hughes is scheduled to release third-quarter 2026 earnings on Oct. 27. The Zacks Consensus Estimate for BKR's earnings is pegged at 64 cents per share, suggesting a 5.9% decline from the prior-year reported figure. ConocoPhillips is scheduled to release third-quarter 2026 earnings on Nov. 5. The Zacks Consensus Estimate for COP's earnings is pegged at $2.86 per share, suggesting a 77.6% improvement from the prior-year reported figure. Equinor is scheduled to release third-quarter 2026 earnings on Oct. 28. The Zacks Consensus Estimate for EQNR's earnings is pegged at $1.38 per share, suggesting a 273% improvement from the prior-year reported figure. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SLB Limited (SLB) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Baker Hughes Company (BKR) : Free Stock Analysis Report Equinor ASA (EQNR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Kinder Morgan, Inc. KMI reported third-quarter 2026 adjusted earnings of 35 cents per share, beating the Zacks Consensus Estimate of 33 cents by 6.1%. Earnings increased 20.7% from 29 cents in the year-ago quarter. Revenues increased 9.3% year over year to $4.53 billion from $4.15 billion. Revenues surpassed the consensus estimate of $4.38 billion by 3.4%. Strong quarterly results benefited from higher natural gas transportation and gathering volumes, alongside improved contributions from the Terminals and CO2 businesses. Natural gas transport volumes rose 3%, while gathering volumes increased 14%. Kinder Morgan, Inc. price-consensus-eps-surprise-chart | Kinder Morgan, Inc. Quote Natural Gas Pipelines adjusted segment earnings before depreciation, depletion and amortization (EBDA) increased to $1.49 billion from $1.40 billion a year earlier. Higher contributions from the El Paso Natural Gas Pipeline, KinderHawk gathering system, Tennessee Gas Pipeline and Texas Intrastate system supported the improvement. Transportation volumes averaged 49,273 billion British thermal units per day (BBtu/d), compared with 47,918 BBtu/d in the prior-year quarter. Growth primarily reflected higher liquefied natural gas deliveries on the Tennessee Gas Pipeline and increased demand for services on the Texas Intrastate system. Gathering volumes advanced to 4,722 BBtu/d from 4,129 BBtu/d, primarily supported by stronger activity on the KinderHawk system. Products Pipelines adjusted segment EBDA increased to $313 million from $288 million. Favorable commodity pricing supported performance, although legal, environmental and other expense accruals weighed on reported segment results. Total refined products volumes declined 3% to approximately 1.60 million barrels per day from 1.65 million barrels per day, reflecting a higher commodity price environment. Crude and condensate volumes decreased 11% to 410,000 barrels per day, primarily due to lower Bakken gathering volumes and the conversion of the Double H pipeline to natural gas liquids service. Terminals adjusted segment EBDA increased to $314 million from $274 million. Higher liquids contributions from expansion projects, stronger coal and petroleum coke handling activities and improved Jones Act tanker rates supported results. Liquids utilization declined to 92.6% from 94.6%. CO2 adjusted segment EBDA rose to $184 million from $136 million. Total net oil production increased to 27,070 barrels per day from 25,040 barrels per day. The realized weighted average oil price increased to $68.65 per barrel from $67.74, while the realized NGL price rose to $34.48 from $31.09. Total operating costs, expenses and other increased 9.3% year over year to $3.37 billion. Costs of sales rose to $1.57 billion from $1.40 billion, while operations and maintenance expenses increased to $949 million from $786 million. Operating income increased 9.1% to $1.16 billion. The operating margin remained relatively stable at 25.6%, reflecting comparable growth in revenues and operating expenses. Adjusted EBITDA reached a third-quarter record of $2.18 billion, up 9% year over year. Net income attributable to KMI increased 22% to $764 million, while reported earnings rose to 34 cents per share from 28 cents. The expansion project backlog reached $14.4 billion at quarter-end, increasing $4.7 billion sequentially. The company added $5.4 billion in projects, partially offset by $700 million of projects placed into service. Natural gas projects accounted for $13.2 billion of the backlog. Major additions included the Southeast Connector and Permian Link projects, designed to transport approximately 2.6 billion and 2.8 billion cubic feet per day of natural gas, respectively. More than 75% of the total backlog supports power generation and local distribution demand, highlighting growing infrastructure requirements. Cash flow from operations increased to $1.59 billion from $1.41 billion in the year-ago quarter. Free cash flow declined to $545 million from $621 million, while free cash flow after dividends was negative $120 million. As of Sept. 30, 2026, cash and cash equivalents totaled $918 million, compared with $63 million at 2025-end. Net debt stood at $32.23 billion. The net debt-to-adjusted EBITDA ratio improved to 3.5 from 3.8 at the end of 2025. Kinder Morgan expects full-year adjusted EBITDA to exceed its original $8.6 billion budget by more than 6%. Adjusted earnings are projected to surpass the initial $1.36-per-share budget by more than 13%. The company also expects its year-end net debt-to-adjusted EBITDA ratio to reach 3.6, compared with the original budget of 3.8. The board declared a quarterly dividend of 29.75 cents per share, up 2% year over year. The dividend is payable Nov. 16, 2026, to shareholders of record as of Nov. 2, 2026. Kinder Morgan currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks from the energy sector that are yet to release their third-quarter 2026 earnings are Baker Hughes Company BKR, ConocoPhillips COP) and Equinor ASA EQNR. BKR, COP, EQNR currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today's Zacks #1 Rank stocks here. Baker Hughes is scheduled to release third-quarter 2026 earnings on Oct. 27. The Zacks Consensus Estimate for BKR's earnings is pegged at 64 cents per share, suggesting a 5.9% decline from the prior-year reported figure. ConocoPhillips is scheduled to release third-quarter 2026 earnings on Nov. 5. The Zacks Consensus Estimate for COP's earnings is pegged at $2.86 per share, suggesting a 77.6% improvement from the prior-year reported figure. Equinor is scheduled to release third-quarter 2026 earnings on Oct. 28. The Zacks Consensus Estimate for EQNR's earnings is pegged at $1.38 per share, suggesting a 273% improvement from the prior-year reported figure. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Baker Hughes Company (BKR) : Free Stock Analysis Report Equinor ASA (EQNR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ConocoPhillips (COP) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company. Analysts' growing optimism on the earnings prospects of this energy company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For ConocoPhillips, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The company is expected to earn $2.86 per share for the current quarter, which represents a year-over-year change of +77.6%. Over the last 30 days, the Zacks Consensus Estimate for ConocoPhillips has increased 17.89% because four estimates have moved higher while one has gone lower. For the full year, the company is expected to earn $11.19 per share, representing a year-over-year change of +81.7%. There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, five estimates have moved up for ConocoPhillips versus no negative revisions. This has pushed the consensus estimate 6.14% higher. Thanks to promising estimate revisions, ConocoPhillips currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Investors have been betting on ConocoPhillips because of its solid estimate revisions, as evident from the stock's 6.4% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ConocoPhillips (COP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. - Total Operating Revenues: ~$174.5 million in Q1 2026, vs. ~$175.5 million in Q4 2025. - Gross Charter Hire: ~$177 million across the fleet in Q1. - Container Fleet Revenue: ~$81 million gross charter hire, including profit share income from fuel savings on seven large container vessels. - Car Carrier Revenue: ~$26 million gross charter hire, consistent with the prior quarter. - Tanker Revenue: ~$46 million gross charter hire, up from ~$42 million in Q4 2025. - Dry Bulk Revenue: ~$2 million, down from ~$3 million in the prior quarter. - Energy Segment Revenue: ~$23 million, driven primarily by the Linus Drilling rig on long-term contract with ConocoPhillips through May 2029. - Adjusted EBITDA: ~$108 million, consistent with Q4 2025; trailing 12-month EBITDA of $443 million. - Operating and G&A Expenses: ~$69 million, in line with the prior quarter; shipping fleet OpEx ~$42 million. - GAAP Net Profit: ~$26 million, or $0.20 per share, vs. a net loss of $4.6 million ($0.04 per share) in Q4 2025. - Nonrecurring/Noncash Items: Gain on sale of assets $11.5 million; mark-to-market gain on hedging derivatives $2.5 million; mark-to-market gain on equity investments $1.9 million. - Dividend: 89th consecutive quarterly dividend raised to $0.22 per share, up 10% from the prior quarter; ~7.5% annualized yield. - Charter Backlog: ~$3.7 billion, with more than two-thirds from investment-grade counterparties. - Fleet Size: 57 maritime assets, including vessels, rigs and contracted newbuildings. - Fleet Composition: 2 dry bulk vessels, 30 container ships, 16 large tankers, 2 chemical tankers, 7 car carriers and 2 drilling rigs. - Operating Days: 4,598 total operating days in Q1. - Utilization: Container 100%, car carriers 100%, tankers and dry bulk 99%, Energy segment 50% (Hercules rig warm stacked). - Suezmax Spot Performance: ~$54,000 per day time charter equivalent in Q1 vs. cash breakeven below $20,000 per day; 53% of Q2 vessel days covered at ~$185,000 per day. - Liquidity: Cash and cash equivalents ~$128 million plus ~$160 million undrawn credit facilities, totaling over $280 million. - Bond Issuance: $75 million tap issue of 2030 senior unsecured bonds at 103.5% of par, implying ~6.8% yield to maturity. - Debt Amortization: ~$56 million in scheduled loan amortization during the quarter, over $220 million annualized. - Newbuilding Commitments: Five contracted container newbuildings with remaining capex commitments of ~$850 million. - Book Equity Ratio: ~27% as of quarter end. - Warning! GuruFocus has detected 13 Warning Signs with SFL. - High Yield Dividend Stocks in Gurus' Portfolio - This Powerful Chart Made Peter Lynch 29% A Year For 13 Years - How to calculate the intrinsic value of a stock? - Is SFL fairly valued? Test your thesis with our free DCF calculator. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - SFL Corp Ltd (NYSE:SFL) declared its 89th consecutive quarterly dividend and increased it by 10% to $0.22 per share, reflecting confidence in cash flow generation. - The company reported strong Q1 2026 revenues of $174 million and EBITDA of $108 million, with net income of $26 million, demonstrating operational stability. - SFL Corp Ltd (NYSE:SFL) has a robust charter backlog of $3.7 billion, with over two-thirds from investment-grade counterparties, providing high earnings visibility. - The new contract for the Hercules rig adds approximately $170 million to the backlog and positions the rig for future harsh environment campaigns. - The two Suezmax tankers in the spot market are generating exceptional cash flows, with Q2 2026 spot rates averaging around $185,000 per day, significantly above breakeven. - The Energy segment utilization was only 50% due to the Hercules rig being warm stacked, impacting overall fleet utilization. - Dry bulk revenue declined to $2 million from $3 million in the prior quarter, reflecting the strategic divestment of vessels and a smaller fleet. - SFL Corp Ltd (NYSE:SFL) faces upcoming debt maturities, including $150 million in senior unsecured bonds due in May 2026, which will require liquidity for redemption. - The company has significant remaining capital expenditure commitments of approximately $850 million for five container newbuildings, which may strain financial resources. - Spot market exposure for the two Suezmax tankers introduces earnings volatility, and the company may seek longer-term charters at potentially lower rates. Q: How should investors think about opportunities for SFL to build its tanker backlog, given the volatility and strength in tanker rates, particularly for vessels on spot or rolling off contracts?A: CEO Ole Hjertaker explained that SFL was fortunate to end up with two Suezmax tankers in the spot market, having expected the market to firm but not to the extent it has, driven by Arabian Gulf disruptions and significant VLCC supply consolidation. He noted that while SFL's principal business is long-term charters and it will look for longer-term charters for these vessels in due course, the company is currently enjoying the very strong spot market. For Aframax LR2 tankers coming up later in the year, he said SFL "would not be surprised" if those vessels were extended for another year or two given prevailing charter rates. He added that vessel values have risen significantly, backed by higher charter rates, and SFL is looking at new opportunities in the tanker space, though he could not be specific until a deal is done. Q: What drove the decision to increase the dividend by 10% to $0.22 per share, and how is the Board thinking about the dividend given the strong cash flow position?A: CEO Ole Hjertaker said the Board never gives dividend guidance, but the decision was backed by long-term cash flow expectations and multiple positive effects. He cited greater clarity on the Hercules contract, including lower CapEx than alternative contract opportunities that would have required much larger rig investments. He noted the incremental cash flow in Q1 from the two released Suezmax vessels alone was around $0.02 per share, though he called that a coincidence rather than a direct link to the uplift. He also highlighted stellar fleet performance with close to 100% utilization, strong cash flow and strong counterparties as the confidence behind lifting the dividend from $0.20 to $0.22, reiterating that returning capital to shareholders remains the company's driving force. Q: Could you provide more detail on the Hercules rig contract, specifically how much SFL plans to spend on upgrades?A: CEO Ole Hjertaker said SFL has not been specific on numbers, but the required upgrades are relatively low and tactical, involving replacement of equipment reaching the end of its effective life cycle, done in parallel to prepare the rig for long-term harsh environment deployment. Because the rig's last employment was in Canada and it is returning to Canada, very limited upgrades are needed, and the customer will pay for some upgrades benefiting their operations. He noted roughly half of the CapEx guided in the press release relates to the Hercules, with the rest for other vessels, and that staffing will need to increase from warm stack to a full crew before drilling begins, targeting the commencement window in Canada in Q1. Q: When is the index-linked hire on the Linus rig revisited, and based on recent market trends, do you expect any change in the daily hire under the long-term contract?A: CEO Ole Hjertaker said the charter rate for the Linus has been increasing gradually, set by a market panel, and has been scraping upwards, with the contract running until May 2029. He noted ConocoPhillips extended the license from 2029 to 2049, giving another 20 years, and with increased focus on energy production, particularly in the Northern Hemisphere on the Norwegian Continental Shelf, he expects a lot more activity on the UK side and in Canadian waters. He said there will likely be a need for high-end units on that field or similar nearby fields in the foreseeable future, but it is still three years out and too early to discuss anything specific. Q: Should we expect the same long-term charter approach for the two spot Kamsarmaxes as for the two spot Suezmaxes, or is a sale more likely for these vessels?A: CEO Ole Hjertaker said SFL has been looking for contracts for those vessels as well, but for medium-sized bulkers it is typically difficult to find longer-term charters, with charters usually running up to one year, which is also the period counterparties can hedge out through FFAs. He said if SFL does not find that attractive, it would rather take the marginal premium of keeping the vessels in the spot market compared to locking into a time charter and effectively keep that margin itself. He noted SFL typically looks for longer terms than one year, with a sweet spot of maybe three to five years depending on charter rate, and that it all comes down to finding the right counterparty and structure, adding that SFL will be opportunistic and watch the market closely. Q: What were the key financial results for the first quarter of 2026?A: CEO Ole Hjertaker reported revenues of $174 million and an EBITDA equivalent cash flow of $108 million, with trailing 12-month EBITDA of $443 million. Net income was $26 million, or $0.20 per share, and the dividend was increased to $0.22 per share. CFO Aksel Olesen added that GAAP operating revenues were approximately $174.5 million, with vessels contributing about $151.5 million and rigs about $23 million, while operating expenses were approximately $69 million. Adjusted EBITDA was approximately $108 million, consistent with Q4 2025, and the GAAP net profit of $26 million compared to a net loss of $4.6 million in Q4, a swing reflecting both operational improvement and nonrecurring items. Q: What is the current status of SFL's charter backlog and counterparty quality?A: CEO Ole Hjertaker said SFL has a robust charter backlog of $3.7 billion with a very strong counterparty profile, where more than two-thirds of the backlog is to customers with investment-grade credit ratings. COO Trym Sjolie confirmed the backlog from owned and managed shipping assets stands at approximately $3.7 billion, with the fleet comprising two dry bulk vessels, 30 container ships, 16 large tankers, two chemical tankers, seven car carriers and two drilling rigs. He noted two-thirds of contracted revenue is with investment-grade counterparties, giving a high degree of confidence in earnings visibility even in a volatile market environment. Q: How did the fleet perform operationally in the first quarter, and what is the status of the dry dock program?A: COO Trym Sjolie reported total operating days of 4,598 across the fleet, with utilization strong across most segments: container vessels at 100%, car carriers at 100%, and tankers and dry bulk at 99%. The Energy segment ran at 50%, reflecting For the complete transcript of the earnings call, please refer to the full earnings call transcript.

ConocoPhillips has delivered strong returns in recent years and attracted fresh attention as the share price moves higher, which raises a straightforward question for investors who care about fundamentals. Is the current US$134.10 price adequately supported by the earnings power that the business is generating today? - Over the past 5 years the stock has returned 116.0%, which puts meaningful weight on whether those gains are aligned with the company's underlying profit stream. - Recent commentary around higher potential US oil supply and ongoing upstream investment frames expectations for future profitability, which can influence how much investors are prepared to pay for each dollar of ConocoPhillips earnings. - There is a second opinion on ConocoPhillips worth weighing. See what analysts think ConocoPhillips's shares could be worth. The issue now is whether the earnings based valuation lens suggests that ConocoPhillips current share price is well supported by its profit profile. If you want a broader starting point alongside ConocoPhillips, you can apply the same earnings lens to a focused list of oil and energy producers using the 43 power grid technology and infrastructure stocks. The P/E ratio is a useful yardstick for ConocoPhillips because earnings remain a key anchor for how investors assess large oil and gas producers. At a P/E of 17.4x, the stock trades below the peer group average of about 18.7x yet above the broader Oil and Gas industry level of roughly 12.1x. That mix points to a business priced at a premium to the sector, but not at the top end of its direct peer set. The valuation model that blends ConocoPhillips growth prospects, profitability, size and risk points to a higher P/E than where the shares change hands today, so the current 17.4x screens as undervalued on this framework. Recent analyst optimism and a higher price target have pushed the share price up, yet the multiple still sits below what this model would flag as a more typical P/E for the company. For investors, the key question is whether the earnings profile and commodity exposure justify that gap or suggest it could persist. Explore the numbers behind ConocoPhillips's P/E valuation. Simply Wall St Narratives pick up where the P/E discussion leaves off for ConocoPhillips by spelling out which paths for production growth, margins and earnings would need to play out for the stock to end up priced meaningfully above or below today's level. Rather than lean on a single multiple or model figure, each narrative lays out the key inputs behind its fair value view so you can later compare those assumptions with the numbers the company actually reports. The community is split on ConocoPhillips, with one camp seeing LNG-led cash flow upside while the other worries that big project risk is already reflected in the valuation. Bull case: 8% undervalued "Global LNG market tightness, combined with ConocoPhillips securing 12 MTPA of LNG offtake and expecting first LNG from projects such as Port Arthur from 2027, points to a growing contribution from LNG marketing that could support higher revenue and cash flow than currently reflected in the stock..." Discover why this Narrative puts ConocoPhillips at 8% undervalued. Bear case: 6% overvalued "The plan to drive a $7b free cash flow inflection by 2029, including around $1b of incremental free cash flow per year from 2026 to 2028 and a further $4b from Willow, concentrates expectations on a narrow set of large projects..." Explore why this Narrative puts ConocoPhillips at 6% overvalued. Valuation tells you what you are paying for ConocoPhillips, but the research also highlights specific risk checks that could sway how you feel about that price. Take a closer look at 2 warning signs before settling on a valuation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include COP. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering ConocoPhillips (COP), which belongs to the Zacks Oil and Gas - Integrated - United States industry. This energy company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 9.35%. For the most recent quarter, ConocoPhillips was expected to post earnings of $2.96 per share, but it reported $3.24 per share instead, representing a surprise of 9.46%. For the previous quarter, the consensus estimate was $1.73 per share, while it actually produced $1.89 per share, a surprise of 9.25%. Thanks in part to this history, there has been a favorable change in earnings estimates for ConocoPhillips lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. ConocoPhillips has an Earnings ESP of +17.36% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #1 (Strong Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on November 5, 2026. With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ConocoPhillips (COP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Management's own scorecard still leads with dollars, but the return measure that used to sit beside it was absent again, and that changes what a holder is actually betting on. ExxonMobil (XOM) has returned 46% over the past year against roughly 20.5% for the S&P 500, and it earned $14.5 billion in the second quarter of 2026. Set what management foregrounds now beside what it led with two years ago, and one measure has slipped out of the lead: what its capital actually earns. The Latest Results Leave Out The 13% Return on Capital Reporting on 2024, management led with full-year earnings of $34 billion and cited a return measure alongside them: "return on capital employed of 13%." What it foregrounds in the second quarter of 2026 is levels and running totals instead: $14.5 billion of earnings and $16.3 billion of cumulative structural cost savings since 2019. Neither says what the capital base earns. That savings program's latest step came in July 2026, when upstream operations were folded into one global operations organization of roughly 31,000 employees. A Fifth Vessel In Guyana And A Record In The Permian Much of the cash behind those totals goes back into a capital base that keeps growing: cash capital expenditures ran roughly $7 billion in the second quarter of 2026. The Guyana venture has recovered the $55 billion it invested there, nearly two years earlier than anticipated, and its fifth production vessel, Errea Wittu, sailed in June 2026 and, management said in July, remained on track for start-up by the end of 2026. Permian volumes set a record above 1.8 million oil-equivalent barrels a day, produced from acreage that supports extended reach laterals. Over the same three months, more than $9 billion went back to shareholders through dividends and share repurchases, and net debt fell by more than $7 billion. A balance sheet that strengthens through an investment phase this heavy is the kind of property the Trefis High Quality Portfolio favors. Revenue Accelerated To 9.6% While The Margin Slipped That growing base is why the missing ratio matters. Revenue over the past twelve months is about $361 billion, up 9.6% year over year against a three-year average growth rate of 0.0%. Profitability went the other way: the trailing operating margin is 10.7% against a three-year average of 11.7%. Management called the quarter exceptional despite a Middle East disruption that temporarily cost roughly 10% of upstream production; that same disruption also pushed chemical product margins up about 180% from the first quarter of 2026. The trailing year, which still absorbs that one exceptional quarter, is closer to the run rate than Q2 alone; a return figure would tell a holder how close. Reassuring On Cash, Silent On Return None of this is evasion, and the quiet is not in itself a warning. Guyana's cost recovery genuinely converts entitlement volume into free cash flow, and management's stated focus is value rather than volume. But a holder who bought a compounding-returns story now owns a company reporting bigger dollar totals on a thinner trailing margin, and the measure that would settle it has left the front of the results. Watch whether the corporate plan update due at the end of 2026 puts a return-on-capital figure back beside that savings total. Meanwhile, the question worth asking is not how much cash the business threw off, but which companies actually earn a rising return on the capital they keep spending. Unanswered Questions Cost The Biggest Holders The Most When management leaves questions open, the uncertainty weighs heaviest on whoever owns the most of the stock. Concentration tends to arrive by accident rather than by decision. What your largest position would do to your net worth is exactly what the Trefis Wealth team computes, with the same rules-based systematic discipline that runs our High Quality Portfolio. Request a free vulnerability audit of your biggest positions.

ConocoPhillips (NYSE:COP) picked a good week to hand over the keys. On August 6, the company said that CEO Ryan Lance will retire after 14 years, with CFO Andy O'Brien stepping in on September 1, right when ConocoPhillips had its best quarterly results since 2022. Adjusted profit came in at $3.24 a share, well ahead of the $2.88 Wall Street expected, and revenue jumped 32.4% to $19.5 billion. ConocoPhillips (NYSE:COP) pulled off that strong quarter even as production slipped nearly 6% to 2.25 million barrels of oil equivalent per day, leaning instead on a 36% jump in realized prices to carry the results. O'Brien, a nearly 30-year company veteran, inherits a $7 billion free cash flow growth pledge through 2029 that depends heavily on finishing the pricey Willow oil project in Alaska. It is a project whose price tag has already climbed to $9 billion. One of the company's rivals, Exxon Mobil Corporation (NYSE:XOM) told a different story the week before. On July 31, the firm posted its biggest quarterly profit in four years at $14.7 billion, up 67% from the first quarter. It still came up short of the $3.60-per-share estimate with adjusted earnings of $3.52. Its shares fell 1% on the news. So why did ConocoPhillips's win move the stock while Exxon's four-year-high profit left investors cold? Oil platform This was the company's best quarter in years. Handing over the CEO job to a 30-year insider, O'Brien, removes a lot of the uncertainty that usually comes with leadership changes, right as the company chases its $7 billion cash flow target. Nonetheless, on August 7, Barclays analyst Betty Jiang notes that Willow alone underpins nearly 75% of that free cash flow growth plan, and its rising cost is a real threat. ConocoPhillips (NYSE:COP) shares have also lagged Exxon and Chevron over the past three years due to heavy spending, analysts note. Exxon Mobil Corporation (NYSE:XOM)'s $14.7 billion profit was its best in four years. Permian output hit a record above 1.8 million barrels a day. The company recovered its Guyana development costs roughly two years ahead of schedule, which frees up more cash down the road. However, Exxon still missed the Street's per-share number, production dipped from the prior quarter, and roughly 450,000 barrels a day remain offline in Qatar because of the Iran war, with no clear end in sight. Insider Monkey's hedge fund database shows Exxon Mobil Corporation (NYSE:XOM) losing a bit of favor, with 94 holders as of Q1 2026, down from 98 the quarter before. ConocoPhillips saw real momentum build with 74 holders, up from 65, and the dollar value hedge funds held in the stock jumped from about $5.47 billion to $7.51 billion. Another rival, Chevron, moved the other way, up to 103 holders from 86. ConocoPhillips enters the rest of the year in a great position, with a smooth leadership transition and its strongest quarter in years behind it. Exxon posted a four-year high in profit and still couldn't clear Wall Street's bar. The takeaway for both companies is the same, i.e., doing better than you did in the past isn't always enough to satisfy investors today. While we acknowledge the potential of COP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Baker Hughes Company (BKR) Posted Record Orders, so Why is it Warning About 2026 Spending? and ExxonMobil Holdings Corporation (XOM) vs. Chevron Corporation (CVX): Trump Attacks the Oil Giants for Making "Too Much Money" Disclosure: None. This article is originally published at Insider Monkey.

ConocoPhillips delivered second-quarter results that exceeded Wall Street’s expectations, driven by a mix of operational achievements and strategic portfolio actions. Management highlighted record production in the Permian Basin and strong execution on asset sales, which contributed to robust free cash flow and increased shareholder distributions. CEO Ryan Lance, in his final quarter before retirement, emphasized progress on the company’s cost reduction program and the successful completion of its $5 billion disposition target, which management credits for strengthening the portfolio and supporting long-term value creation. Is now the time to buy COP? Find out in our full research report (it’s free). Revenue: $19.52 billion vs analyst estimates of $17.81 billion (32.4% year-on-year growth, 9.6% beat) Adjusted EPS: $3.24 vs analyst estimates of $2.92 (10.8% beat) Operating Margin: 32.1%, up from 22% in the same quarter last year Oil production: down -5.3% year on year Market Capitalization: $152.9 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Neil Singhvi Mehta (Goldman Sachs): Asked CEO Ryan Lance about the timing and planning behind the leadership transition and succession process. Lance emphasized that robust succession planning had been a priority and that the company is in a strong position for new leadership. Steve Richardson (Evercore ISI): Inquired about incoming CEO Andrew O’Brien’s vision for the company. O’Brien responded that while strategic pillars remain unchanged, the goal is to continuously improve performance and portfolio competitiveness. Phillip Youngworth (BMO): Sought clarity on production ramp and risk factors in Qatar. Executive Vice President Kirk L. Johnson explained that while there was some uncertainty due to regional conflicts, the company expects a ramp in production and minimal long-term impact on free cash flow. Doug Leggate (Wolfe Research): Questioned whether capital expenditures would decline after Willow’s development. O’Brien confirmed that peak CapEx is behind and capital needs will decrease, supporting free cash flow inflection. Betty Jiang (Barclays): Asked about the strategic rationale for expanding LNG offtake in Indonesia and its impact on the global LNG portfolio. O’Brien said the move enhances flexibility and margin optimization, aligning with the company’s long-term constructive view on LNG demand. In upcoming quarters, key areas to watch include (1) progress on the Willow project in Alaska, including permitting and further exploration results; (2) the operational ramp-up and cash flow contribution of new LNG offtake agreements in both the Pacific and Gulf Coast markets; and (3) the integration and early performance of new conventional assets in Iraq and Syria. Execution on cost reduction initiatives and sustained Permian productivity will also remain key areas of focus. ConocoPhillips currently trades at $127.25, up from $115.04 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Diamondback Energy, Inc. FANG raised its 2026 production outlook after a second quarter that topped earnings expectations, while leaving its full-year capital budget unchanged. That combination puts capital efficiency at the center of the investment case. Higher volumes could extend earnings momentum if operating gains keep costs contained. The test is whether Diamondback can sustain the larger production base without requiring a proportional increase in spending. Diamondback increased 2026 oil production guidance to 522+ thousand barrels per day from 520+ thousand barrels per day. Total production guidance rose to 1,000+ thousand barrels of oil equivalent per day from 972+ thousand barrels of oil equivalent per day. Full-year cash capital expenditures remain about $3.9 billion. For the third quarter, FANG expects oil production of 517-527 thousand barrels per day, total production of 995-1,015 thousand barrels of oil equivalent per day and capital spending of $950 million to $1.05 billion. Image Source: Diamondback Energy Second-quarter production reached 1.018 million barrels of oil equivalent per day, including 525 thousand barrels of oil per day. Adjusted earnings were $6.48 per share, topping the Zacks Consensus Estimate of $5.96. Revenues of $5.6 billion increased more than 51% year over year and beat the consensus mark by about 17%. The earnings outperformance reflected production growth and a 53.1% year-over-year improvement in realized oil prices. Image Source: Diamondback Energy Diamondback has improved well construction, targeting, stimulation and completion techniques. Management noted that wells that once took about 30 days to drill can now be drilled in roughly five days, while longer laterals and lower costs per foot are supporting well economics. The focus is on combining more wells per section with higher production per well at a low cost per well. ConocoPhillips COP also continues to emphasize capital discipline, reaffirming its full-year 2026 guidance after the second quarter. Occidental Petroleum Corporation OXY reported second-quarter production above the high end of guidance while spending $1.6 billion on capital expenditures. Commodity sensitivity remains the biggest constraint. A sustained crude-price decline could pressure cash flow, drilling economics and the economics of carrying a higher production base. Service-cost inflation is another concern, particularly for casing, fuel and other consumables. Management estimates that maintaining the higher production base could require roughly $1 billion or slightly more of quarterly capital spending. Rising gas production adds another risk because Permian natural gas pricing can weaken when takeaway capacity is tight, limiting the benefit of stronger volumes. The higher guidance supports the case that Diamondback can preserve operating momentum without lifting its full-year capital budget. Still, the payoff depends on execution, commodity prices and the company’s ability to keep efficiency gains ahead of cost inflation. FANG currently carries a Zacks Rank #3 (Hold). It has a Growth Score of A, Momentum Score of A, Value Score of B and VGM Score of A. Those favorable Style Scores reflect attractive growth and momentum characteristics, while the Hold rank keeps the near-term view balanced as investors weigh commodity exposure, costs and execution risk. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research