12:31 PM EST, 11/07/2024 (MT Newswires) -- ConocoPhillips ( COP ) is in a position to outperform large-cap exploration and production peers with a strong balance sheet, competitive free cash flow generation, and scaled Permian assets, among others, RBC Capital Markets said in a note emailed Wednesday.

The Q3 earnings call cleared investor concerns over 2025 outlook with solid financials and strong Permian portfolio, RBC said. The company's results declined year over year, but exceeded expectations.

RBC said ConocoPhillips' ( COP ) free cash flow remains strong and the outlook was further improved by lower capital projections for 2025, partly due to merger synergies. ConocoPhillips ( COP ) expects to close Marathon Oil (MRO) acquisition by year-end.

The company also built a strong balance sheet and has $2 billion in incoming funds from planned non-core asset monetization. The investment firm also expects ConocoPhillips ( COP ) to set at least a $10 billion shareholder return target for 2025.

RBC Capital Markets has an outperform rating for ConocoPhillips ( COP ), with a price target of $135.

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