ConocoPhillips Looks to Grow Oil & Gas Assets
In an interview with Financial Times, ConocoPhillips’ (NYSE:COP) chief executive Jim Mulva said that the company is looking to expand capital spending this year for the right kind of opportunity in deepwater and shale patch. [1] ConocoPhillips is considering a variety of options to partner with companies on exploration and development in the Gulf of Mexico and West Africa. The company is also considering picking up exploration blocks offshore Angola.
ConocoPhillips is one of the largest oil & gas company and competes with Exxon Mobil (NYSE:XOM), BP (NYSE:BP) and Anadarko (NYSE:APC).
- Up 15% In Last Six Months, Will ConocoPhillips Stock Continue To Grow Post Q3?
- ConocoPhillips Q2 Earnings: What Are We Watching?
- What’s Next For ConocoPhillips Stock?
- ConocoPhillips Stock To Likely Trade Higher Post Q4
- This Stock Appears To Be A Better Bet Than EOG Resources
- Earnings Beat In The Cards For ConocoPhillips Stock?
While spending on exploration and development of new resources is a good long-term strategy for ConocoPhillips, new capacity in the natural gas industry could put downward pressure on natural gas prices. Lower natural gas prices could, in turn, constrain ConocoPhillips’ profit margins.
Our price estimate for ConocoPhillips, at $75.32, is about 5-10% below market price.
See our complete analysis for ConocoPhillips stock here
Notes: