UBS Cautious on ConocoPhillips (COP) Amid Increased Willow Project Cost Estimates, Maintains ‘Buy’ Rating

Earlier connected November 6, Bloomberg reported that ConocoPhillips accrued its full spending program for the Willow lipid and earthy state task successful Alaska to arsenic overmuch arsenic $9 cardinal owed to ostentation and rising costs. The institution initially estimated superior spending for the North Slope task astatine $7 to $7.5 billion. The superior crushed for raising the estimation to the caller scope of $8.5 to $9 cardinal is wide inflationary costs amounting to ~$700 million.

ConocoPhillips inactive expects to statesman lipid accumulation from the Willow task successful aboriginal 2029. The task is important for the institution arsenic it diversifies its portfolio portion shale basins successful Texas mature. The Willow task is expected to nutrient ~600 cardinal barrels of crude implicit a 30-year lifespan, which aligns with the propulsion for much home lipid production.

ConocoPhillips (NYSE:COP) explores for, produces, transports, and markets crude oil, bitumen, earthy gas, liquefied earthy gas/LNG, and earthy state liquids.

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