Company pivoting to organic growth after M&A heavy lifting
Management is clearly confident, repeatedly highlighting differentiated portfolio quality, strong execution, and a free cash flow inflection they say is 'now underway.'
Buzzberg 분석Company pivoting to organic growth after M&A heavy liftingManagement is clearly confident, repeatedly highlighting differentiated portfolio quality, strong execution, and a free cash flow inflection they say is 'now underway.'전체 분석 보기분석 접기
Management is clearly confident, repeatedly highlighting differentiated portfolio quality, strong execution, and a free cash flow inflection they say is 'now underway.'
Revenue$13.308B
reported
EPS$1.02
reported
Gross margin19.64%
reported
Op margin15.08%
reported
이번 분기에 달라진 점
01
Strategy
Company pivoting to organic growth after M&A heavy lifting
02
Capex
2026 targets $1B combined capex and opex reduction
Management frames 2026 as a deliberate cost/capex downshift: capex guided lower by roughly $600M and opex by roughly $400M, a combined $1B improvement while still growing underlying production. They emphasize this is the start of a multi-year free cash flow inflection as…
03
FCF
Free cash flow inflection now underway before Willow
04
LNG
LNG projects mostly complete with startup imminent
수요 및 자본지출
수요
수주 및 전환
Management is clearly confident, repeatedly highlighting differentiated portfolio quality, strong execution, and a free cash flow inflection they say is 'now underway.'
자본지출
투자 및 생산능력
Management frames 2026 as a deliberate cost/capex downshift: capex guided lower by roughly $600M and opex by roughly $400M, a combined $1B improvement while still growing underlying production. They emphasize this is the start of a multi-year free cash flow inflection as major-project spending rolls off and LNG/Willow come online.
톤 · Confident
Management is clearly confident, repeatedly highlighting differentiated portfolio quality, strong execution, and a free cash flow inflection they say is 'now underway.'
Chevron is advancing Equatorial Guinea upstream projects that could feed ConocoPhillips' LNG plant; positive for Chevron's Gulf of Guinea position and for extending the life of the LNG infrastructure.
“Specifically with Chevron, they've made some notable progress in a few of their projects. A couple of both new fields as well as, you know, continued development of some existing fields that create some upside for that.”
Kirk JohnsonExecutive Vice President of Global Operations and Technical Functions
… asset through the marathon acquisition. As we've taken it into the company, we've been actively in contact with a number of other operators in and around our LNG facility and upstream assets, thinking about how do we leverage that infrastructure, specifically the liquefaction infrastructure. facility that's using our technology there on the island. Certainly discussions have progressed very well, really pleased with that. Specifically with Chevron, they've made some notable progress in a few of their projects. A couple of both new fields as well as, you know, continued development of some existing fields that create some upside for that. And then naturally we are, as Ryan said, we're in some HOA discussions confidential discussions with the government and a few others around continued infill opportunities, especially gas in and around Malabo and our operation there. So again, this is a continuation here of the theme of what we've been able to do so well, whether it's internationally in Alaska, which is continue to find resources that exist to create this advantage cost of supply to use existing infrastructure. So Expect us to continue to make some progress in that way there in EG.
COP renegotiated Delaware Basin gas midstream contracts with WES, making Western Midstream a key piece of its $1B cost-savings program. — A major Permian producer has locked in lower midstream fees, which pressures WES revenue growth in one of its core basins.
“for the western midstream, we did directly contract that through west, and that's one of the key drivers that Andy had mentioned that achieves that billion dollars of cost savings run rate by year end 2026.”
Nick OldsExecutive Vice President of Lower 48 and Global HSE
Yeah, exactly. If I go back to Shell, I mean, one of the key things as you look at in that area is we continue to core up in strategic trades all the time to increase our lateral links in that area. That drives our capital efficiency as we extend the laterals in there, and we continue to do that on an ongoing basis. As you mentioned, for the western midstream, we did directly contract that through west, and that's one of the key drivers that Andy had mentioned that achieves that billion dollars of cost savings run rate by year end 2026. But on the strategic trades, we continue to do that on an ongoing basis, and if you look at long lateral inventory in that area you mentioned, If I step back to 2023, about 60% of our Permian future well inventory was two miles or greater. But today, that's at 80% due to the strategic trays and core-ups. And in fact, if you look at the 2026 program, 90% of those wells are two miles or greater. So we continue to do that with our BD and land teams, coring it up. And that drives the capital efficiency. When you look at that core-up opportunities, if we go from a one-mile to a two-mile lateral we improve the cost supply about 25%, but if we go to three …
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