Conocophillips: New Security Valuation Report

New Security Valuation Report
ConocoPhillips Co.

Brief Introduction 2012 ConocoPhillips (COP) becomes a newly independent company focused solely on core business of exploration and production. It completed reposition of separation of Phillips66 on April 30th, becoming the world’s largest E&P company based on production and proved reserves.
Business Overview
Investor composition The main ownership breakdown chart (exhibit1) shows that institutional stock and mutual fund ownership is around 65.5%, mutual fund ownership is 2.4%, insider ownership is 0.2% and others possess 32% of it. Since ConocoPhillips is not that heavily owned by the institutions, suggesting average stock liquidity. Besides the stock price would not be
The team’s key activities include equity investments in strategic startups, field trials and demonstration projects for innovative technologies, adapting technology to ConocoPhillips operations and creating new market applications for existing technology. Besides, In 2010 ConocoPhillips launched the Global Water Sustainability Center to study technology related to produced water and desalination. Located in Doha, Qatar, the group’s research addresses ways to reduce freshwater consumption and minimize the environmental impact of wastewater discharge from oil and gas operations.
Sector membership and role therein From exhibit2, it is clear to see that ConocoPhillips ranks 6th in Energy company sales list on Yahoo finance, suggesting that it takes medium or large market shares in energy sector. Besides, its Market Capitalization is around 88.75 billion indicating that large size energy companies would have more competitive advantages in research innovation and facility updating. The most important is that ConocoPhillips’s ranking is 13 among 2013 Top 250 energy companies. Clearly ConocoPhillips is a leading company in its sector.
Exhibit 2 energy company sales
is an American multinational energy corporation with its headquarters located in the United States. It is the world's largest independent pure-play exploration & production company and is also one of the Fortune 500 companies. ConocoPhillips was created through the merger of Conoco Inc. and the Phillips Petroleum Co. on August 30, 2002 and was the fifth largest integrated oil company until spinning off its downstream assets to Phillips 66. Conoco Inc. was an American oil company founded in 1875 as the Continental Oil and Transportation Co. Based in Ogden, Utah, the company was a coal, oil, kerosene, grease and candles distributor in the West. Mar-land Oil Co. later acquired the assets (subject to liabilities) of it, for a consideration of 2,317,266 shares of stock. On July 14, 2011, ConocoPhillips announced its intent to separate the company's upstream and downstream businesses into two stand-alone, publicly traded corporations, with the intent of maximizing shareholder value. On May 1, 2012, all midstream, downstream, marketing and chemical operations were separated into a new company named Phillips 66, headquartered in Houston. As a result, ConocoPhillips continued its operations as an upstream (exploration and production)