Wednesday, April 23, 2014

What makes ConocoPhillips distinct From the Rivals?


ConocoPhillips Co. is a multinational energy corporation whose headquarter is located in Houston, Texas in the United States. It is traded as COP in NYSE and was founded in August 30, 2002. The company products include oil, natural gas, petroleum, lubricants and petrochemicals.  It is the largest independent E &P Company in the Globe. It was created through the merger of Conoco Inc. and the Phillips petroleum co, and it was the fifth largest integrated oil company.
ConocoPhillips separate itself from most of the other major oil companies in the way that in 2013 the ConocoPhillips share price has started to decline. Whereas the other oil and gas exploration companies such as Exxon Mobil or chevron seems to have less impact on its share price during the last three month. ConocoPhillips due to its financial as well as operational result deserves to have more credit.
ConocoPhillips provided better outcomes as compare to Royal Dutch Shell as in the last month the adjusted Earnings per share reported is of $1.40 compared to the past quarter Earnings per share of $1.47. This slight 2% YOY decline is due to the weaker liquid prices.
From 2012 to2013 the net growth in production of ConocoPhillips remains at 30 MBOED where Canadian and the US liquids provide the largest share of growth. The driver of the Growth of ConocoPhillips is its high margin liquid products that will serve over the few years will bring more investment into play. In October 2013 the share price of ConocoPhillips (COP) has lost 12%. This price weakness has open the buying opportunity for the stock as valuation has come down but the fundamentals of the company and the positive catalyst are still remain intact.
COP now trades at 10.8x 2015 forward price-earnings multiple which are at 31% discount. Hence this current valuation should present a buy signals to the investors. Also the company, long term growth potential of 7.4% is not significantly differ from the estimates of S&P 500 companies. The stock offer a dividend yield of 4.2% which exceeds S&P 500 companies average of 1.9%.

Summary:
This article suggests that how ConocoPhillips differ itself form the other major competitors like Chevron and Exxon Mobil. In 2013 the share price of ConocoPhillips started to be in the decreasing side as compare to its competitors who have the less impact on their share prices during past three month but due to its financial and operational results ConocoPhillips deserves to have more credits as there performance are better as far as there results in these operations are concerned. The ConocoPhillips adjusted Earnings per share reported $1.40 compared to the past quarter Earnings per share of $1.47. This decline is due to the weaker liquid prices. In 2013 the net growth in production of ConocoPhillips remains at 30 MBOED where Canadian and the US liquids provide the largest share of growth. The growth drivers of ConocoPhillips are its high margin liquid products that will serve over the few years and will bring more investment into playConocoPhillips is trading at 31% discount; hence the current valuation gives the bullish trend which is attractive for the investors.





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