ConocoPhillips (COP) Covered Calls

ConocoPhillips covered calls ConocoPhillips is the world’s largest independent exploration and production company based on production and proved reserves. The company explores for, produces, transports, and markets crude oil, bitumen, natural gas, natural gas liquids, and liquefied natural gas on a global scale. With operations in 15 countries, it is recognized for its diverse asset portfolio, capital discipline, and focus on delivering high-margin, low cost-of-supply barrels throughout the energy transition.

You can sell covered calls on ConocoPhillips to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for COP (prices last updated Fri 4:16 PM ET):

ConocoPhillips (COP) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
111.43 +0.60 110.50 111.43 6.8M 16 137
Covered Calls For ConocoPhillips (COP)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 111 1.48 109.95 1.7% 77.6%
Mar 20 110 4.45 106.98 3.6% 36.5%
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ConocoPhillips (COP) is a pure-play upstream energy giant that operates across the entire hydrocarbon value chain, excluding refining and marketing. By focusing exclusively on exploration and production (E&P), the company maintains a highly flexible capital structure that allows it to prioritize shareholder returns and high-return projects across its globally diversified portfolio of conventional and unconventional assets.

Core Business and Products

  1. Lower 48 Unconventionals: This segment is the company’s primary cash engine, featuring dominant positions in the Permian, Eagle Ford, and Bakken basins. Following the 2025 integration of Marathon Oil, the company has achieved significant scale and drilling efficiencies, targeting a cost-of-supply typically below $35 per barrel.
  2. Alaska: A legacy stronghold where the company is the leading producer. Strategic focus is currently on the "Willow" project, a multi-decade development on the North Slope on track for first oil in 2029, which is expected to provide a structural uplift in long-cycle free cash flow.
  3. Global LNG: The company is a pioneer in liquefied natural gas, with interests in major projects such as APLNG in Australia and Qatar’s North Field East expansion. It is also advancing the Port Arthur LNG project in the U.S. to monetize North American gas via global pricing benchmarks.
  4. International & Oil Sands: Operations span the Norwegian North Sea, the Middle East, and the Surmont oil sands in Canada, providing a stable base of low-decline production and geographic diversification.

Competitive Landscape

The upstream sector is highly sensitive to commodity price volatility and capital efficiency. As a pure-play E&P, the company competes for capital and assets with integrated "supermajors" like Chevron and Exxon Mobil. In the North American shale basins, it faces direct rivalry from large independent producers such as EOG Resources, Devon Energy, and Diamondback Energy. Additionally, as it expands its global gas footprint, it increasingly competes with midstream and infrastructure leaders like Enbridge and Williams Companies for takeaway capacity and market access.

Strategic Outlook and Innovation

In 2026, the company is executing a $1 billion cost-reduction program aimed at protecting margins in a soft oil price environment. A major strategic shift involves the "Data-to-Barrel" initiative, which leverages generative AI and physics-informed machine learning to optimize well placement and completion designs in real-time. By utilizing digital twins across its global facilities—from the North Slope to the North Sea—the company is reducing non-productive time and enhancing safety through remote monitoring. Furthermore, the company is exploring gas-to-power partnerships to supply reliable energy to power-intensive AI data centers, creating a new demand vector for its Permian gas assets. Management remains committed to a "triple objective" strategy: meeting energy demand, delivering top-quartile shareholder returns (targeting 45% of cash from operations), and achieving net-zero operational emissions by 2050 through carbon capture and methane intensity reductions.