ConocoPhillips (COP) is likely to report Q4 earnings per share above market estimates and output toward the high end of its guidance, UBS said in a note Thursday.
The investment bank expects Q4 EPS of $2.12 and total output at 1.89 million barrels of oil equivalent per day, up 5% from the previous quarter. UBS put the EPS market consensus at $2.09.
“Growth is primarily driven by the increased Surmont working interest,” UBS analysts Josh Silverstein, Peyton Dorne, and Kevin Liu said in the note sent to MT Newswires on Friday. ConocoPhillips bought the remaining 50% interest in the Surmont oil sands asset and associated midstream commitments from TotalEnergies’ (TTE) Canadian unit for about $2.7 billion, finalizing the transaction in late Q3.
UBS also expects the company to achieve its $11 billion capital returns forecast for 2023 and projects $10 billion in shareholder returns for 2024.
The bank has a buy rating on the stock and a price target of $138.