ConocoPhillips reported a strong second quarter operationally with refining and marketing results
ConocoPhillips reported a strong second quarter operationally with refining and marketing results benefiting from strong margins, while the upstream segment's results were inline.
Thanks to Hugo Chavez's government seizure of COP's assets, profits fell 94% to $301 million after a $4.51 billion write-down in Venezuelan properties. The third largest US oil producer is still in negotiations with the government for appropriate compensation of expropriated assets and maintains all legal rights including international arbitration according to the company.
The twenty-two cent upside in earnings to $2.90 per share, coupled with rising oil prices ahead of the weekly inventory results is lifting COP shares in early trading. COP remains one of our favored integrated stocks within the Energy sector. The company recently announced a $15 billion buyback in which $2-$3 billion is expected to take place in the third quarter. We remain buyers of the stock, which trades at 9.0x forward earnings having gained 17% year-to-date.