No. of Recommendations: 4
The company’s aggressive deleveraging stands out as a major positive, with debt reduced from nearly $29B to $13.3B in just 22 months, unlocking $830M in annual interest savings. Analysts emphasized that guidance projects 2026 free cash flow of $5.5B at $65/barrel WTI, equating to a compelling 9% FCF yield at the current valuation. With WTI prices currently above $100/barrel, there’s more than $50M per day in additional cash flow potential.
Pessimists, however, highlighted that the “easy money trade” is largely behind investors, with the current share price of $59-$60 already reflecting geopolitical risk premiums that may fade. Several analysts noted the “magnetic pull” created by Berkshire Hathaway’s at-the-money warrants struck at $59.624, which effectively creates a price ceiling.
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