COP Eyes More Oil in Alaskan Arctic With Expanded Exploration Plan

ConocoPhillips COP has filed fresh applications with U.S. regulators to significantly expand its oil exploration activities in Alaska’s National Petroleum Reserve, signaling a renewed push to unlock more hydrocarbon resources near its flagship Willow project. According to a Bloomberg report, this could become the company’s most ambitious Arctic exploration campaign in over four years.

The proposal includes plans to drill four new exploratory wells — three near the Bear Tooth Unit and one farther east in the Greater Mooses Tooth Unit — and conduct 3D seismic surveys across 300 square miles of land south of Willow. The seismic work aims to upgrade decades-old 2D data from the 1980s and help ConocoPhillips identify additional untapped oil and gas reservoirs.

COP Looks to Maximize Willow and Legacy Infrastructure

The Willow project, currently under construction, is expected to yield up to 600 million barrels of oil over a 30-year life. For ConocoPhillips, Alaska remains a strategic hub where it can leverage existing infrastructure, including older processing facilities and transport networks, to reduce costs and accelerate production timelines.

Erec Isaacson, president of ConocoPhillips Alaska, highlighted the importance of long-term investment in the region. He also emphasized early-stage exploration as a strategic move to ensure a steady flow of future development opportunities that can sustain and utilize existing infrastructure.

No Cost Estimate Yet, But COP Maintains Strong Alaskan Spending

While ConocoPhillips has not disclosed the expected cost of this new exploration push, it aligns with the company’s ongoing capital commitment in the state. Bloomberg noted that the company typically allocates $1 billion to $1.2 billion annually for new development in Alaska, including wells, pads and infrastructure.

If approved, the expanded campaign could further cement ConocoPhillips’ position as one of the most active operators in the Alaskan Arctic at a time when long-term energy security and supply diversification remain global priorities.

COP’s Zacks Rank & Key Picks

COP currently carries a Zack Rank #4 (Sell).

Investors interested in the energy sector may look at a few better-ranked stocks like MPLX LP MPLX, W&T Offshore, Inc. WTI and Viper Energy, Inc. VNOM, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MPLX appears to be a strong long-term investment, as it generates steady income from fixed-fee contracts rather than relying on fluctuating oil and gas prices. It owns and operates key pipelines and processing facilities, positioning it well to grow as U.S. oil and gas production increases, particularly in active regions such as the Permian, Marcellus and Utica.

The Zacks Consensus Estimate for MPLX’s 2025 EPS is pegged at $4.44. The company has a Value Score of B.

W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s acquisition of six shallow-water fields in the GoA added 18.7 million barrels of proved reserves and 60.6 million barrels of proved plus probable reserves. The firm is focused on strategically allocating capital toward organic projects, which should boost its production outlook. WTI has a Value Score of B.

Viper Energy generates strong, steady royalty income from its royalty acres in the prolific Permian Basin, with active rigs providing ample growth potential. The company boasts a lower debt-to-capitalization ratio than the composite stocks in the energy sector, indicating a healthier financial position.

The Zacks Consensus Estimate for VNOM’s 2025 EPS is pegged at $1.62. 

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This article originally published on Zacks Investment Research (zacks.com).

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