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ConocoPhillips - Is This An Opportunity?

Summary

Oil prices are very cheap at the moment, causing the industry to struggle.

However, ConocoPhillips has managed to cut costs and increase production.

The company recently won the rights to build a pipeline in the oil reserve in Alaska.

It offers a high dividend yield of 5.6%.

I Know First algorithm is currently bullish on ConocoPhillips.

ConocoPhillips (NYSE:COP) is a Houston-based Fortune 500 energy corporation. It is the world's largest independent pure play and exploration company. It was created through a merger between American oil companies Conoco, Inc. and Phillips Petroleum Co. in 2002.

Source: COP file photo.

Like with a lot of oil companies, ConocoPhillips has had a difficult year due to a sharp drop in oil prices. In the third quarter this year, ConocoPhillips was worth $(0.38) in earnings per share compared to $1.29 a share last year in the third quarter. This might make investors wary of investing in the energy company. However, ConocoPhillips has had a strong two months, rallying 30% after oil prices had bottomed out in late August. There are many reasons why ConocoPhillips' stock will continue to trend upward.

(Graph Shows How Oil Prices Negatively Impacted ConocoPhillips' Stock)

Cutting Costs but Increasing Production

Despite, having lower oil prices, ConocoPhillips is still hoping to maintain their price per barrel at $60. The first action ConocoPhillips took when oil prices hit a low in August was to lay off 10% of their workforce. This started a new trend for the company to cut costs and become more frugal. "We all know this is a difficult time for the industry, but we're focused on what we can control, and that's our...


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