Will ConocoPhillips Leverage Its Lower 48 Assets for Long-Term Growth?
ConocoPhillips COP maintains a strong foothold in the Lower 48 region, primarily driven by its extensive operations in the prolific Permian Basin. The region consists of resource-rich unconventional assets across the United States, characterized by low production costs and a shorter extraction time. Following the acquisition of Marathon Oil Corporation, the company significantly expanded its Lower 48 footprint. Leveraging its deep-rooted presence in the region, COP continues to drive operational efficiency and scale advantages across its Permian assets.
COP held 2.76 million acres of net developed reserves in the Lower 48 as of Dec. 31, 2025, representing nearly 83% of its U.S. developed portfolio. The segment delivered 1.48 million barrels of oil equivalent per day (MMboed) of production in 2025, representing nearly 62.5% of total production, supported by strong contributions from the Delaware and Midland sub-basins of the Permian Basin.
Since 2023, the majority of ConocoPhillips’s exploration success has come from unconventional plays in the Permian Basin within the Lower 48. For 2026, the company has outlined a $12 billion capital program to fund development drilling, major projects and activities designed to generate long-term growth. It also holds a strong inventory position, with 8.29 million acres of net undeveloped reserves as of Dec. 31, 2025, representing more than 89% of its U.S. net undeveloped acreage. This extensive resource base supports long-term production growth and positions the company to generate additional cash flow and deliver sustained shareholder value.
Will XOM & CVX Gain From Their Strong Footprint in the Permian Basin?
Energy players like Exxon Mobil Corporation XOM and Chevron Corporation CVX also have a strong footprint in the Permian Basin, one of the most prolific basins in the United States.
ExxonMobil holds approximately 1.4 million net acres across the Delaware and Midland sub-basins of the Permian Basin. XOM is enhancing performance through scale, integration and advanced technologies such as its cube development approach and proprietary proppant solutions. These initiatives are expected to drive strong capital efficiency and support XOM’s goal of increasing Permian output to around 2.5 MMboed by 2030.
Chevron also maintains a significant presence in the Permian Basin, with more than 1.75 million net acres in the Delaware and Midland sub-basins. In 2025, CVX produced about 1 MMboed from the region. This contributed to Chevron’s total global production of approximately 3.7 MMboed for the year.
COP’s Price Performance, Valuation & Estimates
COP shares have gained 29.7% over the past year compared with 26% growth of the industry.
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From a valuation standpoint, COP trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 6.2X. This is above the broader industry average of 5.24X.
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The Zacks Consensus Estimate for COP's 2026 earnings has seen upward revisions over the past seven days.
Image Source: Zacks Investment Research
COP currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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