ConocoPhillips (COP): A Top Crude Oil Stock to Buy Now
ConocoPhillips (NYSE:COP) is included among the Best Crude Oil Stocks to Buy According to Hedge Funds.
An underground network of pipelines transporting oil through an expansive terrain.
ConocoPhillips (NYSE:COP) boasts a low-cost portfolio with a cost-to-supply of less than $40 a barrel, cushioning the company’s downside during the recent decline in crude oil prices. Moreover, thanks to its disciplined capital allocation strategy, COP has recently reduced its FY 2025 capital spending guidance by $500 million without impacting production levels, reiterating that it will deliver the same amount of oil and gas but for less money.
With oil prices currently in the upper $60s, ConocoPhillips (NYSE:COP) remains on track to generate significant free cash flow. The oil giant has a consistent, long-term record of distributing a big chunk of this cash to shareholders, averaging an impressive 44.3% payout ratio over the last five years. COP distributed $2.5 billion to shareholders in Q1 2025 and these numbers are expected to receive a significant boost, since the company expects to generate $6 billion in incremental free cash flow by 2029, thanks to its investments in Alaska and in the ballooning LNG sector.
ConocoPhillips (NYSE:COP) has raised its payouts for 10 consecutive years, putting it among the 10 Best and Safe Dividend Stocks to Buy Now.
ConocoPhillips (NYSE:COP) is one of the world’s largest independent E&P companies based on oil and natural gas production and proved reserves.
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Disclosure: None.
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