ConocoPhillips (NYSE:COP) is well positioned to outperform oil and gas producing peers even if the recent oil spike does not last, UBS analyst Lloyd Byrne says in upgrading shares to Buy with a $75 price target.

COP can generate free cash flow and pay its dividend even if oil falls back to $40/bbl, Byrne believes, because “the Eagle Ford can sustain growth for the next decade plus, while the Bakken can sustain flat production for a decade plus.”

COP shares have lagged the overall E&P group this year as investors worry about whether the company has enough oil inventory, but Byrne says COP’s asset base will last for a long time and that investors’ fears are misplaced.

COP’s average Sell Side Rating is Outperform, its Seeking Alpha Authors Rating is Neutral, and its Quant Rating is Bullish.


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