The three largest U.S. oil companies — Exxon Mobil Corporation (XOM) , Chevron Corporation (CVX) and ConocoPhillips (COP) — revealed that they collectively paid more than $42 billion to foreign governments in 2023, about eight times the amount paid in the United States, per a Reuters report. These revelations are a direct result of a new Securities and Exchange Commission (“SEC”) regulation that required transparency in payments made to foreign governments for the first time. Currently, these stocks carry a ...

Company Performance - ConocoPhillips (COP) closed at $105.28, reflecting a +0.53% change from the previous session, outperforming the S&P 500's daily gain of 0.42% [1] - Over the past month, shares of ConocoPhillips have decreased by 7.97%, underperforming the Oils-Energy sector's loss of 2.47% and the S&P 500's gain of 2.06% [1] - The upcoming earnings report is scheduled for October 31, 2024, with an expected EPS of $2.01, indicating a 6.94% decline year-over-year, while revenue is forecasted at $15.13 billion, representing a 1.79% growth [1] Earnings Estimates - For the full year, the Zacks Consensus Estimates project earnings of $8.12 per share and revenue of $59.43 billion, reflecting changes of -7.41% and +1.47% from the prior year, respectively [2] - Recent adjustments to analyst estimates for ConocoPhillips may indicate changing near-term business trends, with positive revisions suggesting optimism about the company's outlook [2] Valuation Metrics - ConocoPhillips has a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate moving 4.46% lower over the last 30 days [3] - The company is currently trading at a Forward P/E ratio of 12.89, which is below the industry average Forward P/E of 15.93 [3] - The PEG ratio for ConocoPhillips stands at 0.82, significantly lower than the industry average PEG ratio of 2.14 [3] Industry Overview - The Oil and Gas - Integrated - United States industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 183, placing it in the bottom 28% of over 250 industries [4] - The Zacks Industry Rank evaluates the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [4]

ConocoPhillips (COP) , the U.S. oil giant, has achieved a significant legal victory in its long-standing battle to recover compensation from Venezuela's state-owned oil company, PDVSA. Per a Reuters report, on Sept. 27, a Trinidad court approved COP's request to seize payments related to a proposed offshore gas project between Venezuela and Trinidad. This move ensued as PDVSA stopped making payments related to a $700 million settlement deal signed in late 2019. COP Pursues $1.33 Billion Claim in Trinidad Co ...

Core Viewpoint - The recent Federal Reserve interest rate cut is expected to benefit the energy sector, particularly exploration and production companies like ConocoPhillips, making its dividend stock an attractive buy now [1]. Group 1: ConocoPhillips' Strategic Moves - ConocoPhillips has engaged in significant mergers and acquisitions, including a deal to acquire Marathon Oil, which is expected to close in Q4 2023 [2]. - The company anticipates that the merger will generate substantial free cash flow, enabling it to accelerate growth, increase dividends, and repurchase stock [2]. - In 2024, ConocoPhillips plans to distribute at least $9 billion to shareholders through buybacks and dividends [2]. Group 2: Financial Projections and Impact of Oil Prices - ConocoPhillips estimates a cash flow change of $120 million to $130 million for every $1 change in the price of West Texas Intermediate (WTI) crude oil, with significant cash flow implications between $70 and $80 per barrel [3]. - The company is targeting full-year capital expenditures of $11.5 billion and operating costs between $9.2 billion and $9.3 billion for 2024 [3]. Group 3: Financial Health and Debt Management - ConocoPhillips maintains a lean balance sheet with a 27% debt-to-capital ratio and a 0.14 debt-to-equity ratio, both near 10-year lows, indicating low leverage and reduced dependency on debt [4]. - The lower interest rates allow ConocoPhillips to refinance or take on new debt at more favorable rates, enhancing its financial flexibility [4]. Group 4: Dividend Strategy - ConocoPhillips is restructuring its dividend program to provide a more predictable payout, now offering a quarterly payment of $0.78 per share, resulting in an annualized yield of approximately 2.8% [5]. - This yield is more than double that of the S&P 500, making it an attractive option in the current low-interest-rate environment [6]. Group 5: Long-term Viability - ConocoPhillips is positioned to withstand economic fluctuations due to its balanced business model, making it a preferable choice in the cyclical oil and gas industry [7]. - The company has established clear expectations for investors, reinforcing its status as a top-tier exploration and production company to consider for investment [7].

Group 1: Oil Price Decline - Brent crude oil prices fell 2.8% to about $71 per barrel, while WTI crude prices dropped more than 3% to about $67.50 [1] - The OPEC+ group plans to gradually increase oil production starting in October, contributing to the decline in oil prices [2] - China's economy is in contraction, with the Purchasing Managers' Index showing its worst numbers in six months, leading to decreased demand for crude oil [2] Group 2: Production Factors - Libya's current inability to produce oil is helping to stabilize prices, but its potential return to production could further depress prices [3] - Libya is capable of producing 700,000 barrels per day, which would be a significant catalyst compared to OPEC's planned output increase of 180,000 barrels per day [3] Group 3: Investment Opportunities - Oil stocks, including Exxon, Conoco, and Shell, have become cheaper, with Conoco having a P/E ratio of less than 12, Shell at 12.1, and Exxon at less than 14 [4] - Shell offers a 4% dividend yield, which is more generous than Conoco's 3% payout, and has the fastest projected earnings growth rate of over 8% [5] - The combination of an 8% growth rate, 4% dividend yield, and a P/E of 12 presents a favorable total return ratio for Shell [5]

Group 1: Oil Companies - Occidental Petroleum and ConocoPhillips have seen significant stock sell-offs due to West Texas Intermediate crude oil prices dropping below $70 per barrel [2][5] - Occidental Petroleum has a breakeven level below $50 per barrel, while ConocoPhillips aims to be free cash flow positive at $35 per barrel [5] - Both companies have made substantial acquisitions recently, with Occidental completing a $12 billion acquisition of CrownRock and ConocoPhillips planning to acquire Marathon Oil for $22.5 billion [5] Group 2: United Parcel Service (UPS) - UPS's stock has declined approximately 45% from its all-time high, with revenue falling and operating margins at a 10-year low due to high costs and overextended routes [6][9] - Despite challenges, UPS is returning to volume growth in U.S. package deliveries and maintains a 4.9% dividend yield, which is considered a compelling turnaround opportunity [9] Group 3: Toyota Motor - Toyota has experienced a significant sell-off despite achieving all-time highs earlier in 2024, with declining car sales in Japan and China impacting results [10][11] - The company is focusing on hybrid vehicles and new low-carbon engine designs while paying a growing dividend, making it an attractive investment opportunity [11] Group 4: Estee Lauder - Estee Lauder's stock has fallen to an eight-year low, primarily due to challenges in consumer discretionary spending and reliance on in-person shopping [12] - The company possesses a strong portfolio of timeless brands and could be a turnaround candidate if it improves its marketing strategy and cost management [12] Group 5: General Insights - All five companies discussed are currently undervalued but have the potential for recovery, making them suitable for patient investors [13][14] - Key factors for turnaround companies include maintaining profitability, navigating macroeconomic challenges, and revamping sales strategies [14]

ConocoPhillips (COP) , a Houston-based oil and gas exploration and production company, has signed a long-term supply agreement with a German energy firm, Uniper. Per the terms of the agreement, ConocoPhillips will supply up to 10 billion cubic meters of natural gas to Uniper in north-western Europe over the coming 10 years.A ConocoPhillips representative has mentioned that the deal is not for the supply of liquefied natural gas (LNG). Instead, it involves supplying natural gas via pipelines. In the case of ...

Company Performance - ConocoPhillips (COP) closed at $110.55, marking a +1.78% move from the prior day, outperforming the S&P 500's daily gain of 1.7% [1] - Over the last month, ConocoPhillips shares decreased by 0.91%, compared to the Oils-Energy sector's loss of 2.52% and the S&P 500's gain of 1.27% [1] - The upcoming earnings release is projected to show an EPS of $2.05, indicating a 5.09% drop year-over-year, with quarterly revenue expected at $15.17 billion, up 2.02% from the previous year [1] Annual Forecast - Zacks Consensus Estimates forecast earnings of $8.24 per share and revenue of $59.54 billion for the year, reflecting changes of -6.04% and +1.65% respectively compared to the previous year [2] - Recent changes to analyst estimates suggest optimism about the company's business outlook, with positive revisions indicating favorable near-term trends [2] Valuation Metrics - ConocoPhillips has a Forward P/E ratio of 13.18, which is a discount compared to the industry average Forward P/E of 16.66 [3] - The company has a PEG ratio of 0.84, significantly lower than the industry average PEG ratio of 2.23 [3] Industry Context - The Oil and Gas - Integrated - United States industry ranks in the bottom 26% of all industries, with a current Zacks Industry Rank of 188 [4] - The Zacks Industry Rank assesses the strength of industry groups, indicating that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]

ConocoPhillips (NYSE: COP ) is a well-run energy enterprise with considerable earnings power and free cash flow upside in the context of the company's recent acquisition of Marathon Oil. The energy company is focused on upstream operations and is seeingAnalyst’s Disclosure: I/we have a beneficial long position in the shares of COP, XOM, CVX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (oth ...

Company Performance - ConocoPhillips (COP) closed at $103.50, reflecting a +0.58% change from the previous day, outperforming the S&P 500's gain of 0.54% [1] - The stock has decreased by 7.49% over the past month, underperforming the Oils-Energy sector's loss of 3.91% and the S&P 500's gain of 4.86% [1] - The upcoming earnings report is expected to show an EPS of $2.08, a decrease of 3.7% year-over-year, with revenue forecasted at $15.23 billion, indicating a 2.47% growth compared to the same quarter last year [1] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $8.41 per share and revenue at $59.75 billion, reflecting changes of -4.1% and +2.01% respectively from the previous year [2] - Recent changes in analyst estimates suggest a positive outlook for the company's business operations and profit generation capabilities [2] Zacks Rank and Valuation - The Zacks Rank system rates ConocoPhillips at 3 (Hold), with a historical average annual return of +25% for 1 rated stocks since 1988 [3] - The current Forward P/E ratio for ConocoPhillips is 12.23, which is lower than the industry's average Forward P/E of 16.06 [3] - The company has a PEG ratio of 0.78, significantly below the industry average PEG ratio of 2.05 [3] Industry Overview - The Oil and Gas - Integrated - United States industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 151, placing it in the bottom 41% of over 250 industries [4] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]