ConocoPhillips Company (NYSE:COP) is the world’s largest independent exploration and production company, based on proved reserves and production of oil and natural gas. Its headquarters is located in Houston, Texas (U.S.A) and - unlike most of U.S. independent oil companies - it has a globally diversified portfolio of assets, as well as a diversified range of energy projects (ie. .
In this report, we have provided an evaluation and professional opinion on the company’s portfolio of assets and operational performance. Our objective analysis will help you to understand and validate the company’s strategy, as well as setting the scene for any business model or strategy recommendation that we might make.
ConocoPhillips is active in 21 countries …show more content…
Key to this is the company’s aim to safely operating its producing assets, as well as analyzing future energy resources in new promising areas.
According to ConocoPhillips CEO Ryan Lance, the industry is entering a new world of "lower mid-cycle and more volatile prices." This highlights the need for companies in this sector to have the right portfolio mix, in order to create value over the long term.
ConocoPhillips’ portfolio of assets spans across North America, Asia, Europe and Australia.
In the company’s first-quarter conference call, Lance said:
“We believe that our value proposition lies in the combination of our unique portfolio attributes and our capital allocation principles. ... Underlying our value proposition is a portfolio that we think is quite unique among E&Ps. We have listed several attributes that distinguish our asset base. We have a diverse, relatively low-decline base of production. We expect our decline rate to moderate somewhat over the next few years as we bring on additional tranches of low to no decline oil sands and LNG …show more content…
It is this combination of a strong low-decline foundation as well as both short- and medium-cycle growth that makes ConocoPhillips unique. That's because most of its peers are overly reliant on either longer-cycle assets (thus limiting their overall flexibility) or on big shale plays, which is much higher-decline production, making it harder for these companies to maintain a steady rate of production during a low point in commodity prices.
ConocoPhillips believes its portfolio offers the best of both worlds, making it ideally set up for the new world of increased oil price volatility.
The take home message is that ConocoPhillips is actively taking several steps to grow production. I think that the market does not completely appreciate the growth ability of the company's acreage in North American unconventional plays. The company remains certain in its potential to reach production targets and to generate robust cash flow. While it is likely that the company will have a flat 2016, our analysis predicts a stronger 2017 as major projects come online and the contribution from its unconventional portfolio
In this report, we have provided an evaluation and professional opinion on the company’s portfolio of assets and operational performance. Our objective analysis will help you to understand and validate the company’s strategy, as well as setting the scene for any business model or strategy recommendation that we might make.
ConocoPhillips is active in 21 countries …show more content…
Key to this is the company’s aim to safely operating its producing assets, as well as analyzing future energy resources in new promising areas.
According to ConocoPhillips CEO Ryan Lance, the industry is entering a new world of "lower mid-cycle and more volatile prices." This highlights the need for companies in this sector to have the right portfolio mix, in order to create value over the long term.
ConocoPhillips’ portfolio of assets spans across North America, Asia, Europe and Australia.
In the company’s first-quarter conference call, Lance said:
“We believe that our value proposition lies in the combination of our unique portfolio attributes and our capital allocation principles. ... Underlying our value proposition is a portfolio that we think is quite unique among E&Ps. We have listed several attributes that distinguish our asset base. We have a diverse, relatively low-decline base of production. We expect our decline rate to moderate somewhat over the next few years as we bring on additional tranches of low to no decline oil sands and LNG …show more content…
It is this combination of a strong low-decline foundation as well as both short- and medium-cycle growth that makes ConocoPhillips unique. That's because most of its peers are overly reliant on either longer-cycle assets (thus limiting their overall flexibility) or on big shale plays, which is much higher-decline production, making it harder for these companies to maintain a steady rate of production during a low point in commodity prices.
ConocoPhillips believes its portfolio offers the best of both worlds, making it ideally set up for the new world of increased oil price volatility.
The take home message is that ConocoPhillips is actively taking several steps to grow production. I think that the market does not completely appreciate the growth ability of the company's acreage in North American unconventional plays. The company remains certain in its potential to reach production targets and to generate robust cash flow. While it is likely that the company will have a flat 2016, our analysis predicts a stronger 2017 as major projects come online and the contribution from its unconventional portfolio