Conoco Phillips Valuation

Conoco Phillips Valuation

Suitability Growth & Income Price $37.60 Company Overview ConocoPhillips (COP) is the third-largest integrated energy company in the United States and sixth-largest in the world. Worldwide activities are: petroleum exploration and production; petroleum refining, marketing, supply and transportation; natural gas gathering, processing and marketing with a 50% interest in DCP Midstream LLC; chemical and plastic production and distribution with a 50% interest in Chevron Phillips Chemical Company LLC. Headquartered in Houston, Texas, COP employees over 32,000 in nearly 40 countries. At the end of 2008, assets exceeded $142 billion and debt-to-equity ratio neared 50%. The company owns 21% of LUKOIL, a Russian oil company. Market Data 52-Week Range $95.96-$34.12 Market Cap. $55.97M Div. Pmt. Months Mar Jun Sep Dec Est. Earnings Date April 29. 2009 Valuation 2008A 2009E 2010E Earnings 10.66 4.75 6.60 P/E 3.3x 7.4x 5.3x Financial Data % Revenues International 30% Debt Ratings (S&P/Moody’s) A-/A3 SUMMARY Shares of ConocoPhillips are rated a BUY for investors with goals of growth and income. The company is well-positioned for the longer term as its Emerging Business sector is focused on adapting to ever-increasing regulations of the market and continued worldwide exploration. 5-year stock price history SOURCE http://money.cnn.com {draw:frame} Positioning Recent acquisitions have given ConocoPhillips and more balanced business mix and exposure to a greater geographical area. Though it may appear that prices were excessive given today’s commodity prices, these deals make sense over the longer term and will be favorable for shareholders. As the largest producer of natural gas in North America, the growing and continued demand for power generation will also prove beneficial. Growth Outlook Reduced average oil and gas prices relative to 2008 are expected in future years. This combined with modest production growth and cost-saving initiatives lead to...

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