Friday, July 11, 2014

Worrying Time For ConocoPhillips in Energy Industry


ConocoPhillips has been a dominant force in the energy industry for many years. ConocoPhillips Corporation is a multinational energy corporation based in America. The company’s headquarter is in Houston, United States. The corporation is known as the world’s largest independent exploration and production and Manufacturing Company. The company is a result of amalgamation of Conoco Inc. and Phillips Petroleum Co. which happened in 2002.

The company officials say, “The Company's production growth, margin improvement, and fantastic dividend yield made it a great value when compared to the other big U.S. oil companies.” However, the biggest advantage is that the company is no longer cheap when it is compared to its competitors and peers. But the company has revolutionized the paradigm of the energy sector of United States. This particular sector has gained a lot from the company over the recent years. The company has had a good run over the recent years when compared to its competitors and peers as Cummins stock. Not only in the United States but globally a lot has been gained through oil and natural gas manufacturing industry.

The industry of oil and natural gas production is steady and in a very good position in the United States and worldwide. Companies like Chevron, Cummins, ExxonMobil, and ConocoPhillips are known as the dominant forces of this industry hence it seems like at some points, Conoco is handling things nicely as the company increased limits of its projects. Moreover, the company increased rates of production as well which is a very good initiative taken by an oil company. The company officials say that "Conoco will probably make due on its production growth estimates through 2016, but there are good reasons to believe this momentum will not continue past that time." More being added that, "Since 2012, Conoco's annual production growth has generally outpaced that of its peers thanks to the company's heavy investment in the shale. Shale oil has provided Conoco with not only high production growth but also better margins.” 

Hence in a nutshell, it is believed that the future of the energy sector of United States is safe and sound as there is no sign of declining or stopping when it comes to margins. ConocoPhillips are going through a very good phase over the recent years which have showed a positive sign for the industry as well as the company.

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