ConocoPhillips shares gained 1.5% in pre-market trading to $132.33 on Monday, outperforming a weaker broader market where the S&P 500, Dow Jones and Nasdaq each fell around 0.3%.
The advance followed a surge in oil prices of more than 3%, driven by escalating Middle East tensions after U.S. forces struck two missile launchers on Iran’s Larak Island on Sunday. Iranian state media reported retaliatory strikes on two U.S. air bases in Jordan on Monday, heightening concerns over potential disruptions to crude flows through the Strait of Hormuz.
Geopolitical developments in Venezuela also contributed to the upward pressure on oil markets. Over the weekend, the U.S. military captured Venezuelan President Nicolás Maduro, and President Trump declared American control over Venezuela’s oil reserves. These actions followed years of legal disputes involving energy firms with assets nationalized by Venezuela in 2007.
ConocoPhillips has been pursuing approximately $12 billion in outstanding arbitration awards tied to the nationalization of its Venezuelan assets. The Pentagon’s Office of Strategic Capital announced plans to take a 35% passive stake in a Venezuelan oil venture through penny warrants, with preferential rights to 20% of future production. Other energy companies with Venezuelan exposure include Chevron and ExxonMobil.
Analysts have also cited a leadership transition at ConocoPhillips as a supportive factor. CFO Andy O’Brien is set to succeed long-time CEO Ryan Lance, effective Tuesday. Raymond James recently raised its price target on ConocoPhillips to $168, reflecting confidence in the company’s operational and strategic positioning amid volatile energy markets.
