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ConocoPhillips
Rank: 75 Ticker: COP Market value: $108 billion
WHY IT'S HOT: High oil prices. ConocoPhillips is the nation's second-largest refiner and third-largest American oil company overall (behind ExxonMobil and Chevron).CHALLENGES AND OPPORTUNITIES: Almost 80 percent of Conoco's oil and gas reserves are in mature regions in North America and Europe, so CEO Jim Mulva needs to push into more resource-rich regions, such as Russia and the Middle East. This year, Mulva is spending $18 billion to finance new drilling projects, upgrade investment-starved refineries and make acquisitions, including increasing Conoco's stake in Russian oil producer Lukoil. But this can be risky - witness the charge Conoco had to take when Venezuela unexpectedly slapped higher taxes on foreign oil companies. And growing by acquisition is getting pricey. Critics say Mulva overpaid when he bought energy giant Burlington Resources last year for $35 billion, a deal that added $19 billion in debt. STOCK OUTLOOK: With a price-earnings ratio of six (based on the previous 12 months' earnings), the stock sells at a significant discount to its peers. The gap stems in part from Mulva's willingness to embrace risky exploration projects. But so far Mulva's bets have paid off, making Conoco shares look awfully attractive. |
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About CNNMoney
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Content
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Magazines
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Site Tools
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Stay Connected
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer
LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer.
Morningstar: © 2012 Morningstar, Inc. All Rights Reserved. Disclaimer
The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2012 is proprietary to Dow Jones & Company, Inc.
Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.
FactSet Research Systems Inc. 2012. All rights reserved. Most stock quote data provided by BATS.
© 2012 Cable News Network. A Time Warner Company. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy. Ad choices .
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