ConocoPhillips COP, a Houston-based oil and gas exploration and production company, has signed a long-term supply agreement with a German energy firm, Uniper. Per the terms of the agreement, ConocoPhillips will supply up to 10 billion cubic meters of natural gas to Uniper in north-western Europe over the coming 10 years.
A ConocoPhillips representative has mentioned that the deal is not for the supply of liquefied natural gas (LNG). Instead, it involves supplying natural gas via pipelines. In the case of natural gas pipeline supply, the commodity is transported in its gaseous state, unlike LNG, where the gas is cooled and turned into liquid before being transported via tankers.
ConocoPhillips owns stakes in several natural gas fields in Norway. It transports the natural gas extracted from the Norwegian gas fields to continental Europe and Britain through pipelines.
The German energy company highlighted that its partnership with ConocoPhillips has been in place for more than 40 years. The COP representative also mentioned that this supply deal should enable the company to ramp up its natural gas supply to Europe. The company has entered into crucial long-term regasification capacity commitments with several terminals in Europe, including German LNG, Gate and Zeebrugge.
ConocoPhillips’ deal should support energy security in Germany and Europe by increasing the amount of natural gas entering the region.
Currently, COP carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are PEDEVCO Corp. PED,TechnipFMC FTI and VAALCO Energy EGY. PEDEVCO presently sports a Zacks Rank #1 (Strong Buy), while TechnipFMC and VAALCO Energy carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
PEDEVCO is engaged in the acquisition and development of energy assets in the United States and Pacific Rim countries. The company stands to benefit significantly from its holdings in the Permian Basin, one of the most prolific oil-producing regions in the United States, as well as in the D-J Basin in Colorado, which includes more than 150 high-quality drilling locations. Combined with bullish oil prices, this is expected to boost the company's production and overall profitability.
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The company’s total backlog witnessed a record high of $13.9 million in the second quarter of 2024, indicating a year-over-year increase of 4.51%. This growing backlog ensures strong revenue growth for FTI in the future.
VAALCO Energy is an independent energy company involved in upstream business operationswith a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
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