Oppenheimer Raises Price Target for ConocoPhillips

In a note dated June 5th, Oppenheimer analyst, Robert Du Boff raised the price target of ConocoPhillips from $85 to $95 citing higher margins. Further, Du Boff noted that if the company reaches a settlement with Venezuela could give the company's valuation another 10 percent boost. Du Boff's "key points" Included:

• First quarter 2014 adjusted earnings of $2.25 billion or $1.81 per share vs. consensus of $1.56 per share. This marks an increase of 28 percent year-over-year and 29 percent sequentially.
• Production increased 3 percent year-over-year after being adjusted for disposition and downtime, driven by U.S. onshore, oil sands and other major projects.
• Du Boff says the company is looking to invest 95 percent of its capital expenditures into production over the next four year and is targeting a 3-5 percent CAGR.

Du Boff concluded with the following estimates:

• Operating cash flow of $18.2 billion and $19.5 billion respectively for 2014 and 2015.
• CapEx of $16.7 billion and $ 16.3 billion, respectively
• $3.4 billion in annual dividends
• Free cash flow deficits of $1.9 billion and 175 million, respectively.