RBC Capital analysts provided their views on ConocoPhillips (NYSE:COP), noting the company is well positioned to deliver shareholder payouts of over 50% of its cash flow, consistent with last year.
According to RBC Capital, the upcoming analyst day following earnings should provide visibility for that to be sustained moving forward. The analysts believe the key investor debates are progression toward FID on Willow, optimal development pace for the Lower-48, the outlook for shareholder returns if strip prices hold through 2023, and uses for the growing cash balance.
The analysts cut their Q4 EPS/CFPS estimates by $0.38/$0.05 to $2.74/$4.98, mostly to reflect benchmark commodity prices that were below their prior oil price forecast. Street estimates stand at $2.77/ $5.19. The analysts maintained their Outperform rating and $140 price target on the company’s shares.