Yesterday we discussed the price of oil and stated that in our opinion, the price of oil is likely to continue higher over time. We are not looking for a new secular bull market in oil, just a steady, slow march higher that corrects the brutal selloff in 2015 & 2016. Some of our subscribers prefer to trade in equities and leave the commodity trades to someone else. So upon request, we decided to discuss one of the least talked about big exploration and production companies, ConocoPhillips (COP).
For those not familiar with the company, ConocoPhillips explores, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids worldwide. Its portfolio includes North American tight oil and oil sands assets in Canada, they own and develop conventional assets in North America, Europe, Asia, and Australia. In addition, they have various LNG developments and an inventory of conventional and unconventional exploration prospects. The company has a strategic cooperation agreement with China National Offshore Oil Corporation. The company was founded in 1917 and earned $6.2 billion ($5.32/share) on $36.4 billion in revenues.
