11:16 AM EDT, 08/14/2025 (MT Newswires) -- ConocoPhillips ( COP ) is likely to see the peak of its major capital spending at $3 billion this year, which is expected to drop by at least $1 billion in 2026 as the working capital headwind is also now mostly in the rear-view scene, RBC said in a Wednesday note.

The energy giant's cash flows will start to grow by late next year due to the Qatar North Field expansion project, followed by Port Arthur, North Field South, and finally Willow in 2029, analysts Scott Hanold and Samuel Cox wrote.

Additionally, the analysts said that ConocoPhillips ( COP ) is "clearly focused" on enhancing its business rather than expanding it, and trimming off non-core operations is underway as the management intends to achieve more through its new $5 billion monetization target by the end of 2026.

The analysts also mentioned they "like" the defensive strategy that the company's asset width and balance sheet offers.

RBC maintained ConocoPhillips' ( COP ) rating at outperform with a $113 price target.

Shares of the company were down 1% in recent Thursday trading.

Price: 94.73, Change: -1.15, Percent Change: -1.20