Why ConocoPhillips Is Among the Best Oil Stocks to Buy Now for Decade-Long Holdings

When looking at the best oil stocks to buy now for long-term investment, ConocoPhillips stands out with a compelling combination of operational excellence and shareholder returns. The company’s 2025 performance demonstrated why it deserves a spot in any energy-focused portfolio, delivering results that position it to generate significantly greater cash returns through 2029.

Exceptional Performance Powers Cash Generation

ConocoPhillips wrapped up 2025 with results that exceeded internal expectations across multiple metrics. CEO Ryan Lance highlighted the company’s achievements in its earnings announcement: outperformance on production targets, successful integration of Marathon Oil (which doubled expected cost synergies), and continued margin enhancement initiatives.

The numbers tell a compelling story. Production reached nearly 2.4 million barrels of oil equivalent annually, a 2.5% increase year-over-year. More impressive was the Marathon Oil integration achievement—the company captured over $1 billion in annual cost savings, doubling its original estimate. With an additional $1 billion in cost reductions targeted by year-end 2026, ConocoPhillips is systematically improving its operational efficiency.

This operational discipline paid dividends in cash generation. The company produced $19.9 billion in operating cash flow while generating $7.3 billion in free cash flow. Supplementing this with $3.2 billion from non-core asset sales, ConocoPhillips returned $9 billion to shareholders through a combination of $5 billion in buybacks and $4 billion in dividends. The dividend increase of 8% last year marked achievement of a strategic target—positioning the company in the top 25% of S&P 500 firms for dividend growth.

The Catalyst for Future Growth: Doubling Down on Cash Returns

ConocoPhillips invested $12.6 billion in capital projects designed to sustain and expand its global operations. Three major liquefied natural gas (LNG) export projects and the Willow oil development in Alaska represent the cornerstones of future growth. These investments are expected to unlock an additional $1 billion in annual incremental free cash flow through 2028 as the LNG facilities achieve production.

The real inflection point arrives in 2029 when Willow reaches full production. This single project is projected to generate an additional $4 billion in free cash flow annually—a transformative figure for shareholders. Combined with ongoing cost synergies and LNG contributions, ConocoPhillips expects to accumulate $7 billion in incremental free cash flow by the end of this decade, nearly doubling the company’s 2025 generation.

These projections assume a baseline oil price of $70 per barrel, providing meaningful visibility. Even at a more conservative $60 per barrel scenario, the company would still produce approximately $6 billion in annual free cash flow—substantially above current levels.

Why This Oil Stock Stands Out for Income Investors

The business model is straightforward but powerful: expanding cash generation translates directly into expanded shareholder returns. With nearly double the free cash flow projected by 2029, ConocoPhillips will have considerably more capital to deploy toward both share repurchases and dividend growth. For investors seeking exposure to best oil stocks to buy now with proven income trajectories, this cash generation story is difficult to overlook.

The company’s high-quality asset base—particularly in lower-48 domestic positions and globally competitive LNG ventures—provides sustainable competitive advantages. Unlike companies dependent on exploration upside or margin improvement alone, ConocoPhillips is executing against known, largely derisked projects with clear timelines.

Building a Long-Term Position in Energy

For investors considering best-in-class energy investments through the end of this decade, ConocoPhillips presents a tangible path to growing cash returns. The combination of current dividend yields, committed capital project delivery, and realistic free cash flow expansion creates a framework for sustained shareholder value creation.

The visibility into the company’s cash flow progression—from current levels toward nearly double by 2029—makes this one of the more predictable and attractive opportunities among oil stocks worth buying for patient, income-focused investors. With clear catalysts ahead and demonstrated operational discipline, the case for holding this energy stock through the remainder of the decade appears compelling.