ConocoPhillips Faces Challenges Amid Market Volatility
Houston, Texas-based ConocoPhillips (COP) stands as one of the largest independent exploration and production (E&P) companies globally, characterized by significant production and proved reserves. Boasting a market capitalization of $126.2 billion, the company employs approximately 11,800 individuals and operates across 13 countries in the Americas, Indo-Pacific, and EMEA regions.
As a large-cap stock, defined as companies valued at $10 billion or more, ConocoPhillips’ position in the oil and gas industry justifies its valuation exceeding this threshold. The company is committed to developing and producing oil and natural gas while prioritizing safe and responsible practices to meet global energy demands.
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Nevertheless, not all aspects of ConocoPhillips’ performance have been positive. The stock has decreased by 31.5% from its two-year high of $135.18, reached on April 12, 2024. Additionally, COP experienced a 12.7% decline over the past three months, contrasting with the Nasdaq Composite ($NASX), which experienced a lesser dip of 5.8% during the same period.
Reviewing the longer-term trend reveals further challenges for ConocoPhillips. The stock has decreased by 18.9% over the past 52 weeks and 15.7% in the last six months, underperforming the Nasdaq Composite, which saw a 12.8% increase over the past year and 7.1% in the last six months.
Supporting the bearish sentiment, COP stock has consistently remained below its 200-day moving average since late May 2024, trading along a downward-trending 50-day moving average in recent months.
Following the Q4 results release on February 6, COP stock saw a slight decline. The company reported a production increase to 2,183 MBOED, up 281 MBOED compared to the previous year’s quarter. Despite this, lower oil prices led to a 3.7% year-over-year decrease in overall revenue, totaling $14.7 billion. Concurrently, adjusted net income dropped nearly 16% year-over-year to $2.4 billion. On a positive note, the company’s total revenue exceeded Wall Street expectations by 41 basis points, and its adjusted earnings per share (EPS) of $1.98 outperformed consensus estimates by 4.2%, cushioning the decline in stock prices.
In addition, COP has underperformed compared to its peer EOG Resources, Inc. (EOG), which achieved a 3.8% gain over the past year, despite experiencing a 2.5% decline over the last six months.
Despite these challenges, analysts maintain a positive outlook for ConocoPhillips. The stock holds a consensus “Strong Buy” rating among the 28 analysts covering it. Furthermore, the mean price target of $130.62 suggests a substantial upside of 41% over current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
