Worth Watching Stock for Traders: ConocoPhillips Company (NYSE: COP)

On Thursday, ConocoPhillips Company (NYSE: COP) ended the last transaction at $59.54, with a change of 3.31%. The daily volume was calculated at 9481549 shares. The company has a market worth of $67041.74M. It holds an average volume of 6686.27K shares. In 52-week session, the stock hit the peak level of -16.45% and touched to lowest level of 18.77%.

ConocoPhillips (COP) recently stated third-quarter 2019 earnings of $3.1B, or $2.74 per share, contrast with third-quarter 2018 earnings of $1.9B, or $1.59 per share. Not Including special items, third-quarter 2019 adjusted earnings were $0.9B, or $0.82 per share, contrast with third-quarter 2018 adjusted earnings of $1.6B, or $1.36 per share. Special items for the current quarter were primarily Because of a gain realized on the completed United Kingdom (U.K.) divestiture.

Third-Quarter Highlights and Recent Announcements

  • Cash provided by operating activities was $2.3B. Not Including working capital, cash from operations (CFO) of $2.6B exceeded capital expenditures and investments, generating free cash flow of $1.0B.
  • Repurchased $0.75B of shares and paid $0.34B in dividends in the third quarter, representing a return of 41 percent of CFO to shareholders.
  • Third-quarter production not including Libya of 1,322 MBOED; year-over-year underlying production grew 7 percent overall and 6 percent on a debt-adjusted share basis.
  • Increased production from the Lower 48 Big 3 unconventionals by 21 percent year-over-year.
  • Executed turnabouts in Alaska, Malaysia and Norway.
  • Ended the quarter with cash, cash equivalents and restricted cash totaling $7.5B and short-term investments of $0.9B, equaling $8.4B of ending cash and short-term investments.
  • Completed the U.K. divestiture, generating $2.2B in proceeds.
  • Completed the before reported Alaska Nuna discovered resource acquisition for about $0.1B.
  • Reported the Australia-West divestiture contract for $1.4B, plus customary closing adjustments, subject to regulatory and other authorization s.
  • Reported a 38 percent increase in the quarterly dividend to 42 cents per share, and $3.0B in planned 2020 share repurchases.

Third-Quarter Review

Production not including Libya for the third quarter of 2019 was 1,322 thousand barrels of oil equivalent per day (MBOED), a 98 MBOED increase over the same period a year ago. Adjusting for closed dispositions and acquisitions, underlying production increased 83 MBOED primarily Because of production growth from the Big 3 unconventionals, development programs and major projects in Alaska, Europe and Asia Pacific. This growth over offset normal field decline. Production from Libya averaged 44 MBOED.

In the Lower 48, production from the Big 3 unconventionals averaged 379 MBOED. The company also completed construction and commissioning of the Montney Phase 1 gas plant in Canada, with startup awaiting completion of a third-party pipeline. In Malaysia, production from the Kebabangan Field continued ramping up and first oil was achieved from Gumusut Phase 2. Turnabouts were completed during the quarter in Alaska, Malaysia and Norway.

Earnings increased contrast with third-quarter 2018 primarily Because of the gain from the U.K. divestiture, partially offset by lower realized prices. Not Including special items, adjusted earnings were lower contrast with third-quarter 2018Because of lower realized prices and higher exploration expenses from increased dry hole costs, partially offset by higher volumes. The company’s total realized price was $47.07 per barrel of oil equivalent (BOE), 18 percent lower than the $57.71 per BOE realized in the third quarter of 2018, reflecting lower marker prices.

For the quarter, cash provided by operating activities was $2.3B. Not Including a $0.3B change in operating working capital, ConocoPhillips generated $2.6B in CFO. CFO included about $0.1B from the PDVSA ICC settlement and was reduced by a $0.3B U.K. pension fund contribution. In addition, the company generated $2.2B in disposition proceeds. The company incurred $1.7B in capital expenditures and investments that included about $0.1B for the Alaska acreage acquisition. In addition, the company repurchased $0.75B in shares and paid $0.34B in dividends.

ConocoPhillips Company has price to cash ratio of 10.05. In the trailing 12 months period, return on assets ratio of the Company was 10.20% and return on equity ratio was 22.20% while its return on investment ratio was 12.60%. In the profitability analysis, net profit margin of the firm was recorded at 21.10% and operating profit margin was calculated at 30.00% while gross profit margin was measured as 46.40%. Beta factor, which measures the riskiness of the security, was registered at 1.04.


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