Wolfe Research Highlights ConocoPhillips' (COP) Asset Sales, Anadarko Acquisition, and Future Cash Flow

ConocoPhillips (NYSE:COP) ranks among the 9 hot energy stocks to buy. On November 6, Wolfe Research reaffirmed its Outperform rating on ConocoPhillips (NYSE:COP) and increased its price target to $131 from $130. The change comes after ConocoPhillips announced an 8% dividend raise, which Wolfe Research characterizes as a possible trigger for the market to recognize the company’s potential.

Wolfe Research highlighted the company’s free cash flow growth in its third-quarter results, estimating a $1 billion gain in 2026-2028, followed by a $4 billion rise in 2029. In addition, ConocoPhillips (NYSE:COP) completed the Anadarko purchase and inked $0.5 billion in noncore dispositions, surpassing its $3 billion asset sales goal for 2025.

Moreover, ConocoPhillips (NYSE:COP) expects to generate an additional $7 billion in free cash flow by 2029, once the Willow project is operational. Wolfe Research added that “COP is a major” that should be compared to more prominent energy companies like CNQ and CVX rather than comparatively smaller shale-focused E&P companies, given the clarity on its free cash flow trajectory.

ConocoPhillips (NYSE:COP) is a global energy company headquartered in Texas that discovers, produces, transports, and trades crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids.

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Disclosure: None. This article is originally published at Insider Monkey.