03:03 PM EDT, 07/17/2024 (MT Newswires) -- ConocoPhillips ( COP ) is likely to demonstrate "continued strong operational performance across the asset base" when it reports its Q2 results, UBS said in an earnings preview emailed Wednesday.

The investment firm said it sees volume growth in the Lower 48 segment and looks for positive news at the Willow project and Port Arthur LNG, offset by weaker Q2 earnings and shareholder returns.

UBS said it expects the company to post Q2 earnings of $1.85 per share, below the consensus of $2.03, to account for "realized pricing and other adjustments" during the quarter. It also estimates Q2 production of 1.93 million barrels of oil equivalent per day, above the midpoint of the company's guidance of 1.91 to 1.95 mmboepd.

UBS said it would be on the lookout for any change in the timeline of ConocoPhillips' ( COP ) acquisition of Marathon Oil ( MRO ) given that both companies had received a second request from the US Federal Trade Commission for more information regarding their proposed merger.

"We remain positive on the transaction as it deepens COP's L48 asset base, provides clear synergies with upside potential, and supports higher shareholder returns," UBS said.

UBS maintained its buy rating and a price target of $159 on the company's stock.

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