- ConocoPhillips (COP +2.7%) pushes out to strong gains after posting better than expected Q3 earnings and generating nearly $1B of free cash flow despite lower crude prices.
- COP's eighth earnings beat in nine quarters shows the company can keep generating "robust" free cash flow, says the analyst team at Tudor Pickering Holt.
- Mizuho Securities analyst Paul Sankey says Q3 results show COP can continue to finance higher dividends and "is uniquely positioned to deliver on it right now."
- CEO Ryan Lance is preparing to unveil a 10-year strategic plan to investors next month, as it tries to position itself as a steady cash generator by focusing on returns to investors over production growth.
- Also, COP gets a high proportion of its oil from assets in Alaska, Asia and the Middle East, where output is slowly declining, but its output from shale production from the Permian, Eagle Ford and Bakken plays climbed 21% Y/Y to 379K bbl/day.