Morningstar Rating

Stock Research and Analysis

by Allen Good, CFA

Bulls Say

Large positions in the Eagle Ford and Bakken offer low-cost liquids growth while offering lower risk and higher returns than international operations.
ConocoPhillips sports a dividend yield unrivaled by any other independent E&P. Proceeds from recent asset sales should ensure the dividend is not cut if oil prices fall.
A rebound in natural gas prices will benefit ConocoPhillips, which holds a large position in U.S. natural gas. Read more 

Bears Say

The company may find it increasingly difficult to increase production and book reserves as nations become more protective of their natural resources and potentially averse to working with foreign energy companies.
ConocoPhillips' long-term growth rate of 3%-5% is low compared with E&P peers'.
Capital spending plans may have to be cut if commodity prices fall, resulting in production growth below targets. Read more 

Management

Ryan Lance, previously senior vice president of E&P, international, assumed the chairman and CEO role of ConocoPhillips after the spin-off. Lance's 26 years of industry experience and background in petroleum engineering should serve him well as   Read more 

Profile

ConocoPhillips is a U.S.-based independent exploration and production firm. In 2013, it produced 867,000 barrels per day of oil and natural gas liquids and 4.1 billion cubic   Read more 

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