Conoco Phillips one
of the world’s largest exploration and production (E&P) companies. Profits and
dividends have grown approximately 9-13% annually over the last 10 years. In the same time frame, COP
has earned between a 10-20% return on equity. The company should continue to
make progress as a result of:
(1) its exposure
to promising international regions,
(2) domestically,
its capital expenditures will focus the development of Eagle Ford Shale,
Permian, Bakken and Barnett fields,
(3) splitting
the exploration and production from the refining and marketing should unlock
value for shareholders,
(4) utilize its
strong cash flow to pay down debt, raise dividends and buy back stock.
Negatives:
(1) short term,
its production will be impacted by the shut down of its Libyan production,
(2) price
fluctuations of oil and natural gas,
(3) its
international operations are subject to political risks.
Conoco is rated
A++ by Value Line, has a 28% debt to equity ratio and its stock yields
approximately 4.6%.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2003
Debt/ EPS Down Net Value Line
Equity ROE Since 2003 Margin Rating
Chart
Note:
COP stock made good progress off its
March
2009 low, quickly surpassing the downtrend off its June 2008 high (red
line)
and the November 2008 trading high (green line). Long
term, COP
is in an uptrend (straight blue lines).
Intermediate term, it is in an uptrend (purple lines). The
wiggly blue line is on balance
volume. The Dividend Growth and High
Yield Portfolios own full positions in COP .
The upper boundary of its Buy
Value Range Sell
Half Range
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