| ConocoPhillips' Growth Initiatives to Fuel Future Growth - Analyst Blog | |
| | |
|
On May 14, 2015, we issued an updated research report on ConocoPhillips COP, a major global exploration and production company.
ConocoPhillips has leading positions in both natural gas and heavy crude oil in North America. Moreover, the company holds a legacy position in the North Sea and has a growing exposure to lucrative international regions. Backed by these positives, ConocoPhillips expects to replace reserves and sustain production growth over the long term.
ConocoPhillips’ initiatives toward liquids-rich plays are gaining momentum through the Eagle Ford, Bakken and Permian plays. For the first quarter, daily production averaged 1.610 million barrels of oil equivalent (MMBOE). The company is on track to deliver average annual production as well as margin growth of 3–5%, with its focus on liquid-rich ventures primarily in the U.S. and Canada, although partially offset by curtailed production at Libya. Organic reserve additions came mainly from Eagle Ford and Bakken in the Lower 48, oil sands and western Canada as well as APLNG. Going forward, these regions are likely to play an important part in increasing the company’s yield.
However, we remain cautious about the company’s weak near-term production level as the output might be adversely impacted due to divestitures. Additionally, downtime in the fields might result in weak production. Further, the company has slashed its capital expenditure budget from the dystopian 2015 oil space based on assumptions of lower oil prices. The company expects to spend roughly $11.5 billion throughout this year. However, the investment might be curtailed after the most important projects are operational and operations in the unconventional resources of North America are withdrawn.
The company faces greater challenges than its larger peers in generating attractive growth, given its above-average exposure to the mature OECD regions. Moreover, ConocoPhillips lacks material exposure to the prolific non-conventional plays, despite being one of the largest natural gas companies in North America.
Other Stocks to Consider
At present, ConocoPhillips carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the oil and gas sector are Sprague Resources LP SRLP, Pembina Pipeline Corporation PBA and Tallgrass Energy Partners, LP TEP. All of these sport a Zacks Rank #1 (Strong Buy) and would offer above-average returns to investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CONOCOPHILLIPS (COP): Free Stock Analysis Report PEMBINA PIPELN (PBA): Free Stock Analysis Report TALLGRASS ENRGY (TEP): Free Stock Analysis Report SPRAGUE RESRCS (SRLP): Free Stock Analysis Report To read this article on Zacks.com click here.
|
|
|
ConocoPhillips
|
|
|
CODE : COP |
ISIN : US20825C1045 |
|
| |
ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
ConocoPhillips is a producing company based in United states of america. ConocoPhillips is listed in Germany and in United States of America. Its market capitalisation is US$ 150.4 billions as of today (€ 141.1 billions). Its stock quote reached its lowest recent point on December 31, 1991 at US$ 10.94, and its highest recent level on April 18, 2024 at US$ 127.80. ConocoPhillips has 1 177 107 000 shares outstanding. |