ConocoPhillips New CEO Andy O'Brien Faces Tough Task in Alaska Oil Project
ConocoPhillips has announced that Andy O'Brien will succeed Ryan Lance as CEO on September 1, marking a transition after Lance's 14-year tenure. The new CEO inherits the task of completing the Willow oil project in Alaska, which is crucial to achieving the company's goal of adding $7 billion in free cash flow by 2029.
O'Brien, who has been CFO for nearly three decades, will take over at a challenging time for ConocoPhillips. The company has recently underperformed its peers, with its stock trailing ExxonMobil and Chevron over the past three years. Investors are waiting to see results before buying in, according to Scott Hanold of RBC Capital Markets.
The Willow project is critical to reaching the $7 billion free cash flow target, accounting for nearly 75% of ConocoPhillips' growth plan. The company has increased its estimated costs for the project by $1.5 billion due to rising inflation and supply chain costs. Lance, who will become executive chairman, believes the company is in its strongest position yet.