ConocoPhillips COP has witnessed upward earnings estimate revisions for 2021 in the past seven days. So far this year, the stock, sporting a Zacks Rank #1 (Strong Buy), has gained 76.8%, outpacing the 76.3% improvement of the composite stocks belonging to the industry.

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What's Favoring the Stock?

West Texas Intermediate crude price is trading above $70 per barrel, highlighting a substantial improvement from the negative territory hit last April. The positive trajectory in oil price is a boon for ConocoPhillips’ upstream operations. This is because significant production of ConocoPhillips is coming from prolific plays like Eagle Ford, Bakken, and Permian basin.

With the acquisition of Shell Enterprises LLC’s prolific Delaware basin position, ConocoPhillips has already strengthened its position further in Permian. With the $9.5 billion in a cash transaction, COP has acquired roughly 225,000 net acres and producing properties in Texas. This has brightened ConocoPhillips’ production outlook.

ConocoPhillips recently announced its capital budget for 2022 at $7.2 billion. Of the total planned capital spending, COP has decided to allot 60% capital toward the Lower 48, which includes prolific plays like the Eagle Ford, Bakken and Permian basin. With the capital spending plan, COP expects its production next year at roughly 1.8 million barrels of oil equivalent per day (MMBoE/D), suggesting an improvement from 1.5 MMBoE/D expected this year.

COP is also focusing strongly on returning capital to shareholders. ConocoPhillips has projected return of capital to shareholders in 2022 at roughly $7 billion. This suggests a year-over-year improvement of roughly 16%.

Other Stocks to Consider

Other prospective players in the energy space include Whiting Petroleum Corporation WLL, Continental Resources, Inc. CLR and Devon Energy Corporation DVN. While Continental Resources carries a Zacks Rank #2 (Buy), Whiting Petroleum and Devon Energy sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum is a leading upstream energy company and is the top producer of crude oil in North Dakota. With oil price improving at a healthy pace, Whiting Petroleum expects to continue generating handsome cashflows while maintaining a healthy balance sheet.

Headquartered in Denver, CO, Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days. Looking at the price chart, WLL has gained 156.2% year to date, outpacing the 98.8% rise of the composite stocks belonging to the industry.