Here is Why ConocoPhillips (COP) is a Good Large Cap Energy Stock to Buy Now

ConocoPhillips (NYSE:COP) is one of the world’s largest independent E&P companies based on oil and natural gas production and proved reserves. The energy firm made headlines last year when it completed the acquisition of Marathon Petroleum for $22.5 billion, adding over 2 billion barrels of low-cost oil and gas resources to its portfolio.

An underground network of pipelines transporting oil through an expansive terrain.

The deal helped ConocoPhillips (NYSE:COP) increase its total production to 2.389 million boed during Q1 2025, exceeding the high end of our production guidance and up by over 25% compared to the same period last year. The company also beat forecasts in both earnings and revenue during the quarter.

ConocoPhillips (NYSE:COP) boasts a low-cost portfolio with a cost-to-supply of less than $40 a barrel in the U.S. and internationally, allowing it to not only survive but thrive in current market volatility. Moreover, the company is proud of its disciplined capital allocation strategy, which was recently highlighted when COP reduced its capital spending guidance by $500 million and operating costs by $200 million in response to lower crude prices. However, despite cutting CapEx, the company maintained its production guidance, reiterating that it will deliver the same amount of oil and gas but for less money.

ConocoPhillips (NYSE:COP) is known for its commitment to shareholders, with distributions of $2.5 billion to shareholders in Q1 2025, including $1.5 billion through share repurchases and $1 billion through dividends. This represents 45% of CFO returned in the quarter, consistent with its long-term track record.

READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks to Buy According to Hedge Funds.

Disclosure: None.