03:38 PM EDT, 08/08/2024 (MT Newswires) -- ConocoPhillips ( COP ) is expected to complete $3 billion in stock buybacks by the end of 2024, following the Marathon Oil ( MRO ) merger vote, RBC Capital Markets said in a note emailed Thursday.

After the acquisition, the company "will increase its annual buybacks by at least $2 billion to $7+ billion per year," RBC said.

The brokerage said that the merger, expected to close in Q4, is now baked into its estimates for ConocoPhillips ( COP ) and it boosted free cash flow per share estimate by 5% to about $9 per share.

"[ConocoPhillips ( COP )] remains our top large cap E&P stock idea given its large and diverse asset base that provides regional and commodity optionality to manage commodity price volatility while creating shareholder value," RBC said in the note.

Its strong balance sheet gives it a "competitive edge" in increasing shareholder value throughout commodity price cycles, RBC said.

RBC has an outperform rating for ConocoPhillips ( COP ) with a $140 price target.

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