No. 2: ConocoPhillips: Pure play strength of oil, gas producer
By ROD WALTON World Business Editor on Sep 15, 2013, at 2:24 AM Updated on 9/15/13 at 7:07 AM
ConocoPhillips is said to be stronger after spinning off its refining side last year. It's now the nation's largest pure play oil and gas producer. Bloomberg file
Investment Guide
Strong management and a good track record are just a couple of reasons why some investment professionals ranked Laredo Petroleum Holdings Inc. among their top picks.
SemGroup Corp. has been navigating in unchartered territory since the company filed for bankruptcy in 2008, but the energy products transportation and storage firm will soon be without the leader who guided it through choppy waters.
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ConocoPhillips is half the company it used to be, but some analysts believe that makes it stronger than ever.
Houston-based ConocoPhillips was once the integrated giant formed out of the 2002 merger of Phillips Petroleum and Conoco Inc., but it spun off the refining, pipelines and marketing side into Phillips 66 last year. Now the nation's largest pure play oil and gas producer, ConocoPhillips was ranked No. 1 by two participants in this year's Investment Guide poll and in the top five by six of the financial experts.
"They've continually improved their status," said James Brock, certified financial planner at Brock & Associates. He ranked ConocoPhillips atop the Investment Guide choices.
The company still has an international scope but has focused more on domestic and deepwater Gulf of Mexico oil plays and paying out dividends in the recent years. Last year's total production averaged 1.58 million barrels of oil equivalent per day, and assets sales will generate about $10 billion proceeds from 2012 through this year.
Paying back some of that cash to shareholders has become a priority with ConocoPhillips. The company's dividend will be 69 cents per share in September, a 4.5 percent increase.
One potential unknown is the company's plans to export liquified natural gas from terminals in the Gulf Coast. The Department of Energy earlier this year gave its approval to the Freeport LNG project, a joint venture with COP, Dow Chemical, Osaka Gas and other private investors.
"The area of exporting natural gas is one of the biggest risks they are facing," Brock said, noting that exporting LNG has an attractive margin because U.S. prices are cheaper than overseas.
ConocoPhillips employs about 1,000 people in Bartlesville, former home of Phillips Petroleum Co.
ConocoPhillips
Company Address: 600 N. Dairy Ashford Road, Houston, TX, 77079-1175
Phone: 281-293-1000
Web address: www.conocophillips.com
Chairman and CEO: Ryan Lance
Symbol (Exchange): COP (NYSE)
Operation: Exploration and production of oil and gas in 30 countries
Rod Walton 918-581-8457
rod.walton@tulsaworld.com
Original Print Headline: Pure play strength of oil, gas producer
Investment Guide
Strong management and a good track record are just a couple of reasons why some investment professionals ranked Laredo Petroleum Holdings Inc. among their top picks.
SemGroup Corp. has been navigating in unchartered territory since the company filed for bankruptcy in 2008, but the energy products transportation and storage firm will soon be without the leader who guided it through choppy waters.
CONTACT THE REPORTER
918-581-8457
Email
