Source: ConocoPhillips Presentation One of my favorite names in the energy space is ConocoPhillips [NYSE:COP], which shed its downstream [petrochemical plants, refineries] operations when it spun off Phillips 66 [NYSE:PSX] in 2012, making most of its operations in the upstream [exploration and production] space of the oil & gas sector. I like ConocoPhillips for several reasons. Unlike most of its "Big Oil" peers, ConocoPhillips has been able to grow its production base [adjusted for asset sales] over the past couple years. In the fourth quarter of 2013, ConocoPhillips pumped out 1.473 million BOE/d for its continuing operations, which has grown to 1.532 million BOE/d during the beginning of 2015, according to ConocoPhillips management's comments during its latest big analyst meeting and update. While this isn't the high-flying growth other shale producers have seen, it's better than a decline. Going forward, ConocoPhilips intends to grow its production base to 1.7 million BOE/d by 2017. What makes ConocoPhillips production growth guidance particularly impressive is the amount of money Conoco plans on spending through 2017. In 2014, Conoco spent $16.7 billion on its capex budget. This year, that will fall down to $11.5 billion [and stay there through 2017] unless there is a major change in oil prices. Even with the capex cut, Conoco is still guiding for 2% - 3% production growth this year. In order to achieve this guidance, financial flexibility is key. Bringing the APLNG [Australia Pacific LNG] project and the Surmont 2 SAGD facility [steam assisted gravity drainage operation expansion in Canada's oil sands] online this year will allow Conoco to substantially reduce the amount of money it has to spend going forward while bolstering its production base and cash flow streams. Both projects are expected to be operational by Q3 2015. Source: ConocoPhillips Presentation As Conco's major project expenditures wind down, management intends to ramp up ConocoPhillips development of its unconventional resource base [shale assets] to boost Conoco's output. The Eagle Ford especially will play a major role in Conoco's long-term growth story. While low oil prices, particularly low WTI pricing, has taken a bite out of North American shale growth, it hasn't stopped it due to massive gains in well productivity, drilling efficiency, and deflation in third-party oilfield services costs due to low oil prices. According to Wood Mackenzie [as cited in Conoco's update], Conoco needs WTI to trade at just over $40 a barrel [before factoring in hedging] to generate an internal rate of return [IRR] of 10% on its wells in the area, which is considered "break-even" in the shale industry. This compares favorably to where WTI is trading today at $56.35 a barrel. Source: ConocoPhillips Presentation To protect its generous 4.26% dividend yield, which management has repeatedly stated is a top priority, ConocoPhillips had $5.1 billion cash on hand at the end of 2014, an undrawn $6 billion revolving credit line, and there have been several reports Conoco plans to shed some of its non-core assets around the world, including in the North Sea and North America. Solid production growth, greater financial flexibility, capex reductions, a strong yield, and impressive shale operations is why I like ConocoPhillips as a way to play a rebound in oil prices and the North American energy revolution. There are some downsides to look out for. If Conoco isn't able to turn its Surmont 2 and/or its APLNG developments online by Q3 2015 and the start-up dates are pushed back for either facility, it will most likely have to spend more than expected on these projects, reducing its financial flexibility. Uncertainty over where oil prices will go is another key factor to consider. ConocoPhillips is currently spending more on its capex budget and dividend than it's taking it, and "cash flow neutrality" isn't expected until 2017. A sharp downward swing in oil prices would weaken Conoco's financial position further and force it to tack on more debt [or sell additional assets] to plug a larger than expected outspend. On the plus side, WTI seems to have found its footing at around $56 a barrel and Brent has stabilized around $62 a barrel, much better than the sub-$50 a barrel prices the industry had to deal with just a few months ago. Overall, ConocoPhillips is worth considering as an investment and I will continue to update investors on how its operations are going.