ConocoPhillips Clears Key Hurdle Ahead of Australian Drilling Push

ConocoPhillips’ COP subsidiary ConocoPhillips Australia (“COPA”) has completed seabed surveys at targeted drilling locations in the Otway Basin offshore Australia, paving the way for its upcoming exploration program.The seabed assessment supports preparations for a drilling campaign scheduled to begin in the third quarter of 2025 using the Transocean Equinox semi-submersible rig. The data collected will inform drilling safety and environmental planning as COPA advances the Otway Exploration Drilling Program (“OEDP”) off the coasts of Victoria and Tasmania.COP's Otway Venture Gains Momentum With KNOC OnboardThe surveys were finalized just as Korea National Oil Corporation (“KNOC”) joined COPA and Melbourne-based 3D Energi in the Otway gas hunt. The two active permits — VIC/P79 and T/49P — are located in Commonwealth waters adjacent to existing gas-producing fields.Currently, COPA holds an 80% stake while 3D Energi’s subsidiary TDO holds 20%. Under a farm-down agreement pending regulatory approval, COPA will reduce its stake to 51%, KNOC will assume a 29% share, and 3D Energi will retain 20%.COP Plans to Bolster Domestic Gas SupplyThe upcoming exploration drilling aims to identify natural gas reserves that can feed Australia’s domestic energy market. ConocoPhillips emphasized the importance of natural gas for reliable electricity generation, industrial processes and household heating.ConocoPhillips noted that natural gas development has a long and established history in the region and continues to play a key role in meeting Australia's future energy needs. The company also emphasized that its environmental plan for the program incorporates strong mitigation measures designed to minimize impacts on the marine environment to the lowest feasible and acceptable levels.COP Aligns Australia Push With Global Portfolio MovesWhile advancing its Australian drilling plans, ConocoPhillips continues to reshape its global portfolio. The company recently exited its stakes in certain Shell-operated assets in the Gulf of America (formerly the Gulf of Mexico), signaling its intent to focus capital on high-return exploration opportunities like Otway.With seabed surveys now complete and new partners joining the effort, ConocoPhillips is well-positioned to kick off a critical exploration phase in the Otway Basin, reinforcing its long-term commitment to Australia's gas security.COP’s Zacks Rank & Key PicksCOP currently carries a Zack Rank #5 (Strong Sell).Investors interested in the energy sector may look at some better-ranked stocks like Subsea 7 S.A. SUBCY, Energy Transfer LP ET and RPC Inc. RES. Subsea 7 presently sports a Zacks Rank #1 (Strong Buy), while Energy Transfer and RPC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.The Zacks Consensus Estimate for SUBCY’s 2025 EPS is pegged at $1.31. The company has a Value Score of A.Energy Transfer is poised to benefit from long-term fee-based commitments. It is also focused on expanding operations through organic and inorganic initiatives. The firm is looking for solutions to meet growing energy demands from additional demand centers through its pipeline network. Energy Transfer’s systematic investments should boost its total fractionation capacity at Mont Belvieu and raise its top line.The Zacks Consensus Estimate for ET’s 2025 EPS is pegged at $1.44. The company has a Value Score of A.RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividends and share buybacks. RPC’s current dividend yield is higher than that of the composite stocks in the industry. Its new Tier IV dual-fuel fleet has boosted profits, with plans to further expand high-efficiency equipment to enhance operational capabilities. The Zacks Consensus Estimate for RES’ 2025 EPS is pegged at 38 cents. The company has a Value Score of A. Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ConocoPhillips (COP): Free Stock Analysis Report Energy Transfer LP (ET): Free Stock Analysis Report RPC, Inc. (RES): Free Stock Analysis Report Subsea 7 SA (SUBCY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks