Big Opportunities for ConocoPhillips (COP) Value Investment

photo taken outside the gas station of a ConocoPhillips

ConocoPhillips (COP) stock is up 32% in the past year and that includes all the mess that we’ve been in recently. And it’s trading at a price-to-earnings ratio of 13, with a solid 1.8% dividend.

Now, there’s an OPEC meeting underway and the question is whether the Saudis will cut production to push oil prices higher. But President Trump has already signaled that he wants low oil prices and given the trouble the Saudi royal family is in regarding the killing of a U.S.-based journalist in their embassy in Turkey, they may want to appease the U.S. President.

Regardless of the geo-political wranglings around oil, the fact is COP has operations far beyond the U.S. and actually has partnerships with many state oil companies around the world.

What’s more, after the big oil price crash four years ago, the companies that survived are running much leaner than before and can make money at the current price points.

And COP isn’t just an oil producer and distributor. It is also a major player in natural gas, and natural gas prices have taken off in recent months.

COP just added to its natural gas fields in Canada recently, which will be helpful not only in distributing across North America, but can also be a potential export source.

While natural prices are up in the U.S., Europe and Asia pay three times or more for natural gas. As domestic exports start to increase, this will be a boon for COP stock.



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