How ConocoPhillips Is Maximizing Value in the U.S. Lower 48

ConocoPhillips COP is one of the largest upstream energy companies, with a strong presence across conventional and unconventional plays in 14 countries. The company is primarily involved in the exploration and production of crude oil, natural gas liquids (NGLs), bitumen and natural gas. The largest portion of the company’s production volumes comes from the Lower 48 segment. In the second quarter of 2025, production in the Lower 48 averaged 1,508 thousand barrels of oil equivalent per day (mboe/d), accounting for nearly 63% of total production.The energy firm’s assets in the U.S. Lower 48 are spread across major shale basins, including the Delaware Basin, Midland Basin, Eagle Ford and Bakken shale, which offer 15 years of low-cost drilling inventory. The acquisition of Marathon Oil Corporation in 2024 further enhanced its inventory position in the Lower 48.COP is focused on prioritizing efficiency gains and operational improvements across its Lower 48 assets to increase production instead of expanding its drilling programs. The company believes that its peers, including other integrated majors, cannot match its unique position in the industry, given its advantaged low-cost, high-return assets in the prolific shale basins of the United States. ConocoPhillips’ advanced drilling techniques allow it to reduce the duration and costs associated with drilling wells, driving cost efficiency and improving productivity. Furthermore, its deep-inventory position in the Lower 48 secures a robust production outlook. This combination of operational discipline, cost-advantaged assets and untapped growth potential in the U.S. Lower 48 reinforces COP’s competitive position in the energy sector.XOM & VNOM’s Expansion in the U.S. Shale BasinsExxon Mobil Corporation XOM and Viper Energy, Inc. VNOM have recently expanded their footprint in the shale basins of the United States.ExxonMobil’s acquisition of Pioneer Natural Resources has expanded its Permian footprint, enabling efficient, lower-cost drilling and increased profitability. Meanwhile, in Guyana, ExxonMobil remains the leading operator of the Stabroek Block, with the largest share in the oilfield. These assets are expected to deliver significant returns and support the energy major’s production for decades.Viper Energy’s $4.1 billion acquisition of Sitio Royalties strengthens its position in the Permian Basin. Sitio Royalties has roughly 25,300 net royalty acres in the Permian, bringing the combined firm’s presence in the most prolific basin to 85,700 net royalty acres. This acquisition underscores the attractiveness of the prolific shale basins in the United States as they can support low-cost production, making operations highly profitable.COP’s Price Performance, Valuation & EstimatesShares of COP have plunged 15% over the past year compared with the 21.3% decline 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 5.39x. This is below the broader industry average of 9.24x.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for COP’s 2025 earnings has been revised upward over the past 30 days.Image Source: Zacks Investment ResearchCOP, XOM and VNOM currently carry a Zacks Rank #3 (Hold), each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them 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 Exxon Mobil Corporation (XOM): Free Stock Analysis Report ConocoPhillips (COP): Free Stock Analysis Report Viper Energy Inc. (VNOM): 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