Can ConocoPhillips Sustain Long-Term Growth in the Lower 48?

ConocoPhillips COP maintains a strong presence in the Lower 48 region through its resource-rich portfolio in the prolific Permian Basin. This region offers low production costs and rapid extraction cycles. The company significantly expanded its footprint after acquiring Marathon Oil Corporation. Building on this expanded footprint, COP continues to leverage its operational expertise to maximize scale and efficiency across the Lower 48 operations.Since 2023, the majority of ConocoPhillips’ exploration success has come from unconventional plays in the Permian Basin within the Lower 48. In the first quarter of 2026, COP produced 1.453 million barrels of oil equivalent per day (MMboe/d) from its Lower 48 region, representing nearly 63% of its total production. To increase Lower 48 production, the company drilled longer horizontal wells in the first quarter of 2026 compared with the prior-year period. This approach allows the upstream player to extract more oil and gas per well while reducing costs and boosting efficiency.During the first quarter of 2026, the company invested $2.9 billion in its operations, primarily focusing on short-cycle Lower 48 projects that can deliver quicker production and cash flow. ConocoPhillips increased its capital expenditure guidance for 2026 and projected a capital budget in the range of $12-$12.5 billion to fund development drilling, major projects and activities designed to generate long-term growth. These strategic investments and operational advancements ensure the company remains positioned for sustained long-term production growth.Will XOM & CVX Benefit From Their Massive Permian Footprint?Energy players like ExxonMobil Corporation XOM and Chevron Corporation CVX maintain a strong presence in the Permian Basin, one of the most prolific basins in the United States.ExxonMobil holds a footprint of approximately 1.4 million net acres across the Permian Basin's Delaware and Midland sub-basins. By utilizing advanced techniques like cube development and proprietary proppant solutions, the company enhances operational efficiency and scale. These initiatives are designed to boost capital efficiency and help XOM achieve its target of roughly 2.5 MMboe/d in Permian output by 2030.Chevron also maintains a significant presence in the Permian Basin. CVX reported first-quarter 2026 production of 3.86 million barrels per day, up 15% year over year. This increase was driven by the Hess merger and higher output from the Permian Basin and the Gulf of Mexico.COP’s Price Performance, Valuation & EstimatesConocoPhillips shares have gained 42% over the past year compared with 36.4% growth of the industry. Image Source: Zacks Investment ResearchFrom a valuation standpoint, COP trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 6.68X. This is above the broader industry average of 5.61X.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for COP's 2026 earnings has seen upward revisions over the past seven days.Image Source: Zacks Investment ResearchConocoPhillips currently carries Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks