When ConocoPhillips COP 2.32% reported its quarterly financials this week, its Q2 earnings per share (EPS) of $0.07 handily beat earnings consensus estimates of $0.04. However, it’s not the earnings that have a pair of Wall Street firms talking — it’s ConocoPhillips’ deficit spending. Here’s what the firms had to say.

The Numbers

According to Oppenheimer analyst Fadel Gheit, ConocoPhillips will generate cash flow deficits of $5.2 billion in 2015 and $3.1 billion in 2016.

Alarmingly, Oppenheimer projects that the company would need a crude oil price near $90 per barrel, nearly double its recent price, to fully fund its CAPEX and dividend.

For the quarter, ConocoPhillips had a $98 million loss in the U.S., including a $293 million loss in Lower 48. Gheit estimates that the company would need about $60/bbl WTI for its U.S. Lower 48 operations to break even.

Unfairly Punished?

Barclays analyst Paul Cheng points out…

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