ConocoPhillips Plunges 10.2% in a Day: How Should You Play the Stock?

Group 1: Stock Performance - ConocoPhillips (COP) shares fell 10.23% to close at $95.25, nearing a 52-week low of $86.81, with trading volume at 13,869,000 shares, significantly higher than previous days [1] Group 2: Acquisition and Upstream Presence - The acquisition of Marathon Oil has strengthened COP's upstream presence in the Lower 48, enhancing scale, production capacity, and operational efficiencies [3] Group 3: Reserve Replacement and Capital Efficiency - COP achieved a reserve replacement rate of 244% last year, with an organic reserve replacement of 123%, indicating strong performance in discoveries and drilling [5] - The company focuses capital projects in key regions like Permian, Eagle Ford, and Bakken, which have short payback periods and high margins [7] Group 4: Dividend Yield and Shareholder Returns - COP offers a dividend yield of 3.28%, higher than the industry composite yield of 2.4%, and comparable to EOG's 3.25% but lower than Chevron's 4.4% [8] Group 5: Valuation Metrics - COP is considered relatively undervalued, trading at a trailing 12-month EV/EBITDA of 5.19x, below the industry average of 11.24x and lower than CVX and EOG [11] Group 6: Market Context and Recommendations - Despite the stock price decline, it is suggested not to sell COP shares immediately, as the company is currently undervalued and should be monitored until uncertainties subside [13][14]