Current COP Stock Info

ConocoPhillips cuts capex, but dividend remains king
ConocoPhillips (ticker: COP) held its annual analyst day this week, trimming capex like many of its peers, but reasserting the company’s commitment to maintaining its dividend payout.

The company plans to cut capex by 28%, more than their large-cap peers like YPF (3% cut), Statoil (8% cut), BP, Total (11% cut each) and ExxonMobil (12%), but still less the average of 34% in capital budget cuts from a total of 65 smaller companies compiled by EnerCom.  The company expects its capital budget...

Analyst Commentary

Wells Fargo Securities, Roger Read 04.09.2015
We attended COP’s analyst day in New York on 4/8. We maintain our positive stance on COP – we believe COP’s spending flexibility, disciplined capex approach, substantial (44 billion boe) resource base, conviction towards a growing dividend and focus on returns over growth are all positives. While the dividend remains the top priority, the company has shifted its focus to shorter cycle projects (e.g. unconventionals), reducing opex and capex, reaching cash flow neutrality in 2017, and low “cost of supply” resources. COP still expects production growth through 2017 but has tempered expectations versus last year’s analyst day.

Raymond James, Pavel Molchanov 04.09.2015
Yesterday we attended Conoco's analyst meeting, which - to state the obvious - was rather overshadowed by the record-setting Shell/BG acquisition. Against this backdrop, Conoco did not make any major headlines but rather elaborated on existing guidance for 2015 through 2017. This includes production growth of 2-3% in 2015, a 2017 production target of 1,700 MBoe/d, and $1 billion in cost reductions - replacing last year's plan for 3-5% production and margin growth - with targeted capital spending of $11.5 billion, down from the pre- oil meltdown plan for $16 billion.  


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