ConocoPhillips (COP), the U.S. oil giant, has achieved a significant legal victory in its long-standing battle to recover compensation from Venezuela’s state-owned oil company, PDVSA. Per a Reuters report, on Sept. 27, a Trinidad court approved COP's request to seize payments related to a proposed offshore gas project between Venezuela and Trinidad. This move ensued as PDVSA stopped making payments related to a $700 million settlement deal signed in late 2019.

COP Pursues $1.33 Billion Claim in Trinidad Court

ConocoPhillips has been aggressively enforcing arbitration rulings against PDVSA, including a $1.33 billion claim in Trinidad’s high court. Judge Frank Seepersad, presiding over the case, stated that PDVSA’s previous behavior, such as relocating its European headquarters to Moscow, raised concerns that the company might transfer assets out of Trinidad’s jurisdiction to avoid payment. As a result, a receiver has been appointed to seize specific PDVSA assets tied to the settlement.

COP Targets PDVSA Assets to Recover Funds

In a critical distinction, the court's decision targets PDVSA and its subsidiaries, not the Venezuelan state. COP's legal team identified the assets it seeks to claim from PDVSA, including compensation from the Dragon Gas Field project. PDVSA has seven days to respond and potentially challenge the court's ruling. Neither COP nor PDVSA has issued comments following the decision.

The move has brought COP one step closer to recouping its losses, though the final outcome hinges on PDVSA’s next legal actions.

COP’s Zacks Rank & Key Picks

Currently, ConocoPhillips carries a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like TechnipFMC plc FTI, Core Laboratories Inc. CLB and VAALCO Energy, Inc. EGY, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry, with a focus on the subsea segment in offshore basins worldwide. FTI’s growing backlog ensures strong revenue visibility and supports margin improvements.

The Zacks Consensus Estimate for FTI’s 2024 EPS is pegged at $1.34. The company has a Zacks Style Score of B for Value and A for Growth. It has witnessed upward earnings estimate revisions for 2025 in the past 30 days.

Core Laboratories, an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity in the global hydrocarbon reserve base. CLB’s expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.

The Zacks Consensus Estimate for CLB’s 2024 EPS is pegged at $0.95. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

VAALCO Energy is an independent energy company involved in upstream business operations, with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.

The Zacks Consensus Estimate for EGY’s 2024 EPS is pegged at $0.65. The company has a Value Score of A. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.

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