Key Takeaways ExxonMobil's integrated model gives it an edge over ConocoPhillips amid softer oil prices.COP faces pressure as EIA sees WTI averaging $53.42, below $65.40 in 2025.XOM trades at 9.72X EV/EBITDA vs COP's 5.96X, reflecting a premium for stability.ConocoPhillips (COP) and Exxon Mobil Corporation (XOM) are two of the leading exploration and production firms in the energy space, with each boasting an impressive portfolio of low-cost production assets. Over the past year, XOM has rallied 35.4%, outp ...

ConocoPhillips considers selling Permian assets worth $2 billion, Bloomberg News reports | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]The logo of American oil and natural gas exploration and production company ConocoPhillips is seen during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023.... [Purchase Licensing Rights, opens new tab] Read more- Companies[Conocophillips]Follow[Shell PLC]FollowF ...

JPMorgan taps CHIPS, defense officials for $1.5 trillion security initiative push, memo says | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]JPMorgan Chase logo is seen in this illustration taken January 22, 2026. REUTERS/Dado Ruvic/Illustration [Purchase Licensing Rights, opens new tab]- Companies[JPMorgan Chase & Co]FollowFeb 20 (Reuters) - JPMorgan Chase [(JPM.N), opens new tab] has appointed a group of senior leaders to advance ...

Quick Read SPDR S&P Oil & Gas ETF (XOP) gained 17.1% year-to-date despite WTI crude retreating from $75.89 to $64.53. ConocoPhillips missed Q4 estimates with $1.02 EPS as realized prices dropped 19% year-over-year to $42.46 per barrel. Diamondback Energy beat Q3 expectations with $3.51 EPS driven by strong Permian Basin execution. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here. The SPDR S&P Oil & G ...

Production and Reserves - Total company production for 2025 was 2,375 MBOED, with the Lower 48 segment contributing 67% of consolidated liquids production and 74% of consolidated natural gas production[14][37]. - Net proved reserves at December 31, 2025, totaled 7,637 million barrels of oil equivalent, a decrease from 7,812 million in 2024[20]. - The Alaska segment contributed 12% of consolidated liquids production and 1% of consolidated natural gas production, with an average daily net production of 199 MBOED[24][25]. - The Delaware Basin in the Lower 48 had an average daily net production of 661 MBOED, with 321 MBD of crude oil and 1,011 MMCFD of natural gas[38]. - Average daily net production in the Lower 48 for 2025 was 1,484 MBOED, with crude oil production at 749 MBD and natural gas production at 2,119 MMCFD[38]. - Total consolidated operations for crude oil reserves were 3,321 million barrels at the end of 2025, down from 3,406 million in 2024[20]. - Canadian operations contributed 9% of consolidated liquids production and 5% of consolidated natural gas production in 2025, with total average daily net production of 177 MBOED[47][48]. - The Asia Pacific segment contributed 4% of consolidated liquids production and 2% of consolidated natural gas production in 2025[76]. Projects and Developments - The Willow Project is expected to achieve first oil in early 2029, with near 50% project completion anticipated by winter 2025[26]. - In 2025, the Greater Kuparuk Area achieved first oil from the Nuna project in Q4 2024, with ongoing drilling activity planned through 2027[28]. - The Surmont oil sands project in Alberta achieved first production from Pad 104W-A in Q4 2025, with a focus on cost reduction and optimizing asset performance[49]. - The Montney play in British Columbia saw 31 wells drilled and 23 brought online in 2025, with approximately 297,000 net acres held[51]. - The Eagle Ford segment, with approximately 489,000 net acres, saw 251 operated wells drilled and 264 brought online in 2025[40]. - The company holds approximately 416,000 net acres in the Midland Basin, focusing on full-field development, resulting in 86 operated wells drilled and 94 brought online in 2025[42]. - Phase 4B project includes up to 144 new wells, with 95 completed and online by December 2025[83]. - Phase 5 project includes up to 91 new wells, with 25 completed and online by December 2025[83]. - Gumusut Phase 4 achieved first production in early 2025, targeting Brunei acreage[85]. - Malikai Phase 2 development achieved first oil in February 2021, operating on a tension leg platform[88]. - Siakap North-Petai (SNP) Phase 2 achieved first oil in November 2021, tied back to a FPSO operated by PTTEP[89]. Operational Highlights - ConocoPhillips operated ten rigs and three frac crews in the Delaware Basin, resulting in 176 operated wells drilled in 2025[39]. - The company holds approximately 782,000 net acres in the Delaware Basin, focusing on resource-rich unconventional plays[39]. - The company has a 30% working interest in the Kebabangan Cluster, which has been operational since 2019[86]. - The company has a 35% working interest in Malikai, with first oil achieved in February 2021[88]. - The company has a 30% interest in QatarEnergy LNG N(3), contributing 12 MBD of crude oil and 373 MMCFD of natural gas in 2025[62]. - The company has a 64.2% interest in the Alba Unit in Equatorial Guinea, producing 8 MBD of crude oil and 149 MMCFD of natural gas in 2025[68]. - The company operates two fully subscribed 4.5 MTPA LNG trains in Australia, with long-term sales agreements for LNG with Sinopec and Kansai Electric Power Co., Inc.[78]. - The company has contractual commitments to deliver approximately 9 MTPA of LNG and 175 million barrels of crude oil through 2042[103]. Strategic Focus and Future Outlook - Approximately 84% of proved reserves are located in OECD countries, highlighting the company's strategic asset allocation[19]. - ConocoPhillips is evaluating lower carbon opportunities for future investments while maintaining traditional capital allocation processes[102]. - The company maintains memberships in various Oil Spill Response Organizations (OSROs) for effective disaster management[99]. - At year-end 2025, ConocoPhillips had approximately 9,900 employees, with 62% based in the U.S.[108]. - The company has a total regasification capacity in Europe of approximately 6.7 MTPA[97]. - The company operates an 800-mile pipeline as part of the Trans-Alaska Pipeline System, with a 29.5% ownership interest[32].

Core Investment Strategy - Dividend investing is emphasized as a key strategy for investors seeking steady income and long-term capital appreciation in 2026, particularly in a mixed economic backdrop with stabilizing interest rates [1] Company Analysis: Merck & Co (NYSE: MRK) - Merck is positioned defensively within the healthcare sector, trading at $121.41 with a forward dividend of $3.40 per share, yielding 2.80% [2][3] - The company maintains a forward payout ratio of 34.93%, indicating strong dividend coverage and room for reinvestment [2][3] - Merck has increased its dividend for 15 consecutive years, showcasing its commitment to shareholder returns [4] - The quarterly dividend is currently $0.85, with the next payment scheduled for early April 2026 [4] - Merck benefits from the stability of the healthcare sector and has a strong oncology franchise, particularly with treatments like Keytruda, which supports revenue generation [4] Company Analysis: ConocoPhillips (NYSE: COP) - ConocoPhillips operates in the energy sector, providing exposure to global oil and gas prices, which can lead to both risks and rewards [6][7] - The stock is trading at $111.43, with a forward annual dividend of $3.36 per share, yielding 3.02% [8][9] - The forward payout ratio is 50.06%, reflecting a balance between reinvestment in production assets and returning capital to shareholders [8][9] - ConocoPhillips has structured its capital strategy around disciplined spending and strong free cash flow generation, ensuring sustainability of shareholder returns [7] - The company distributes dividends quarterly, with the next payment of $0.84 scheduled for March 2026 [9]

Core Viewpoint - The U.S. has eased sanctions on Venezuela's energy sector, allowing global energy companies to resume operations and negotiate new investments in oil and gas [1] Group 1: Sanctions Easing - The U.S. Treasury Department issued two general licenses permitting companies like Chevron, BP, Eni, Shell, and Repsol to resume oil and gas operations in Venezuela [1] - A separate license allows global companies to enter contracts for new investments in Venezuelan energy, excluding transactions with entities from Russia, Iran, or China [1] Group 2: Investment Opportunities - The relaxation of sanctions is the most significant since the U.S. removed President Nicolas Maduro last month, with Trump seeking $100 billion in investments from energy companies [1] - Oil sales from Venezuela have reportedly reached $1 billion since Maduro's capture, with projections of an additional $5 billion in the coming months [1] Group 3: U.S. Control and Future Prospects - The U.S. will control the proceeds from Venezuelan oil sales until a "representative government" is established in the country [1] - The Treasury has issued several other licenses to facilitate oil exports, storage, imports, and sales from Venezuela, as well as authorizing U.S. goods and services for oil and gas exploration and production [1] Group 4: Company Engagement - Exxon Mobil and ConocoPhillips, which had their assets seized in 2007, are being encouraged to invest in Venezuela, although Exxon Mobil's CEO previously stated that Venezuela was "uninvestable" [1] - Exxon is currently in discussions with the Venezuelan government and is gathering data about the oil sector [1]

Company Impact - A fire at Valero's Ardmore oil refinery in Oklahoma resulted in one death from injuries sustained during the incident [1] - Valero Energy Corp has not yet provided a comment regarding the situation [1] Industry Context - The incident highlights ongoing safety concerns within the oil refining industry, which may impact operational protocols and regulatory scrutiny [1]

Core Viewpoint - ConocoPhillips and its partners are set to invest approximately $2.11 billion to restart production in the Greater Ekofisk area by the end of 2028, focusing on extracting hydrocarbons from previously shut fields [1] Investment Details - The investment will target three fields: Albuskjell, Vest Ekofisk, and Tommeliten Gamma, which were shut down in 2019 [1] - The project, named Previously Produced Fields (PPF), aims to recover an estimated 90 million to 120 million barrels of oil equivalent in natural gas and condensate from these fields [1] Stakeholder Information - ConocoPhillips holds a 35.1% stake in both Albuskjell and Vest Ekofisk, and a 28.3% stake in Tommeliten Gamma [1] - Other partners include Vaar Energi with a 52.3% stake in Albuskjell and Vest Ekofisk, Orlen Upstream with 7.6%, and state-owned Petoro with 5% [1] - In Tommeliten Gamma, Orlen holds a 62.6% stake while Vaar Energi has 9.1% [1] Production Timeline - The first gas production from the project is anticipated to commence in the final quarter of 2028 [1]

Core Viewpoint - Chevron is experiencing significant stock growth, outperforming the S&P 500, and remains a strong investment despite concerns about its high valuation [1][2]. Financial Performance - Chevron's upstream profits fell from $18.6 billion in 2024 to $12.82 billion in 2025 due to lower oil prices, while downstream profits increased by 75% due to higher refining margins [4]. - The company generated $2.4 billion in additional cash flow from operations, supporting capital expenditures, stock buybacks, and dividend growth [4]. - Diluted earnings per share decreased by 31.8% [4]. Stock and Market Data - Chevron's current stock price is $185.79, with a market capitalization of $374 billion [5]. - The stock has a dividend yield of 3.68% and a gross margin of 13.79% [6]. Strategic Acquisitions - The acquisition of Hess has enhanced Chevron's production capabilities and access to reserves in offshore Guyana, where it collaborates with ExxonMobil and CNOOC [6]. - Chevron is the largest U.S. operator in Venezuela, which has significant offshore oil reserves, potentially benefiting from U.S. investment in the region [7]. Market Conditions and Future Outlook - Oil prices are rising in early 2026, which is expected to improve Chevron's margins [8]. - Management indicated that the company can sustain dividend payments and long-term investments at Brent crude prices of $50 per barrel or lower, with current prices around $67 per barrel [9]. - Chevron announced a 4% dividend increase, marking the 38th consecutive year of dividend growth, supported by improved operational efficiency and technological advancements [10]. Valuation and Investment Perspective - Despite reaching an all-time high, Chevron is considered a balanced buy with a reasonable valuation of 27.2 times earnings and 20.2 times free cash flow [11]. - The stock is viewed as a solid value investment, particularly for those seeking alternatives to AI-driven stocks [11].