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Actionable news in COP: CONOCOPHILLIPS,

Have we already seen the bottom?

Summary

ConocoPhillips released Q3-15 results last week.

ConocoPhillips' reported a $0.38 adjusted loss per share due to plunging realized oil prices. Earnings were in line with estimates.

Lack of downstream operations makes an investment in ConocoPhillips more of an option on the oil price.

Focus on slashing costs could trigger more upside when oil prices recover.

COP yields 5.39%.

Have big oil and gas companies seen their bottoms yet? Unless crude oil reverses course again and marches towards $40/barrel again, I will say yes, we have already seen the bottom. The last eighteen months have been brutal for oil companies; plunging crude oil prices and a persistent supply glut have made sure that valuations of oil companies were hammered down session after session. Big oil producers like Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), or ConocoPhillips (NYSE:COP) lost big chunks of their valuations over the course of the year. That said, they have still done MUCH better than more levered, shale-focused upstream companies like Linn Energy (NASDAQ:LINE), or BreitBurn Energy Partners (NASDAQ:BBEP), whose valuations have really fallen off a cliff.

Source: Yahoo Finance

Out of the "Big Three" oil companies, ConocoPhillips has seen its valuation fall the most, ~20% YTD, and it has a lot to do with ConocoPhillips' heavy...


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