Why Shares of ConocoPhillips Slumped Today

Group 1 - OPEC+ is considering a production increase, which has led to a decline in ConocoPhillips shares by over 4% [1] - ConocoPhillips is uniquely exposed due to its lack of integrated operations, making its valuation heavily reliant on reserves and oil price assumptions [2] - The potential production hike by OPEC+ aims to regain market share from higher-cost producers like ConocoPhillips, which primarily earns from U.S. operations [3] Group 2 - In the previous year, ConocoPhillips generated $5.2 billion in earnings from the U.S. (excluding Hawaii and Alaska), with Alaska contributing $1.3 billion [4] - OPEC+'s actions could create competitive pressure on ConocoPhillips, especially as the company integrates Marathon Oil, acquired for $22.5 billion [6]