ConocoPhillips Invests $3B-Plus to Acquire Remaining 50% Stake in Surmont Oil Sands
May 27, 2023
Trending News 🌥️
CONOCOPHILLIPS ($NYSE:COP): ConocoPhillips, a major American energy company, has announced its plans to acquire the remaining 50% stake in Surmont oil sands for more than $3 billion. ConocoPhillips is an integrated energy company engaged in the exploration, development, production, transportation and marketing of crude oil, natural gas, natural gas liquids, and refined products. Its operations span across North America, Europe, Asia, and Africa.
The acquisition of Surmont is part of ConocoPhillips’ strategy to expand its oil and gas production portfolio and become a leader in the development of oil sands assets. With this investment, ConocoPhillips will have full ownership of Surmont, allowing them to maximize its potential and strengthen their foothold in the North American oil sands market.
Analysis
GoodWhale has conducted an analysis of CONOCOPHILLIPS’s wellbeing. After analyzing the financial and business aspects, it has been determined that CONOCOPHILLIPS is a medium risk investment according to our Risk Rating. Upon further inspection, GoodWhale has detected two risk warnings in the income sheet and balance sheet. If you would like to gain access to this information, register with us to check it out. ConocoPhillips_Invests_3B-Plus_to_Acquire_Remaining_50_Stake_in_Surmont_Oil_Sands”>More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Conocophillips. More…
| Total Revenues | Net Income | Net Margin |
| 75.54k | 15.78k | 20.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Conocophillips. More…
| Operations | Investing | Financing |
| 28.65k | -9.58k | -18.24k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Conocophillips. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 91.44k | 43.66k | 39.49 |
Key Ratios Snapshot
Some of the financial key ratios for Conocophillips are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 36.7% | 61.9% | 34.3% |
| FCF Margin | ROE | ROA |
| 24.8% | 33.8% | 17.7% |
Peers
ConocoPhillips is the largest independent oil and gas exploration and production company in the world, with operations in more than 30 countries. The company is a leading player in the highly competitive oil and gas industry, with major competitors including Pioneer Natural Resources Co, Chevron Corp, Exxon Mobil Corp.
– Pioneer Natural Resources Co ($NYSE:PXD)
Pioneer Natural Resources Co is a publicly traded oil and gas exploration and production company with a market cap of $59.8 billion as of 2022. The company has a return on equity of 21.22%. Pioneer Natural Resources is engaged in the exploration, development, and production of oil and gas properties in the United States. The company’s operations are focused in the Permian Basin of Texas.
– Chevron Corp ($NYSE:CVX)
With a market cap of 328.85B as of 2022 and a ROE of 16.97%, Chevron Corp is a publicly traded oil and gas company headquartered in San Ramon, California. They are engaged in every aspect of the oil and gas industry, including exploration, production, refining, marketing, and transportation. Chevron also has interests in chemicals, mining, and power generation.
– Exxon Mobil Corp ($NYSE:XOM)
Exxon Mobil Corporation is an American multinational oil and gas corporation headquartered in Irving, Texas. It is the largest direct descendant of John D. Rockefeller’s Standard Oil Company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. The company is ranked 3rd in the world by revenue.
The company has a market capitalization of 432.56 billion as of February 2021 and a return on equity of 20.07%. The company explores for, develops, and sells crude oil, natural gas, and petroleum products. It operates through the following segments: Upstream, Downstream, and Chemical. The Upstream segment engages in the exploration, development, and production of crude oil and natural gas. The Downstream segment processes, transports, refines, and markets crude oil and petroleum products. The Chemical segment manufactures and sells petrochemicals and plastics.
Summary
ConocoPhillips has recently announced its intention to purchase the remaining 50% stake in Canada’s Surmont oil sands for more than $3 billion. This move is seen as a strategic investment, as the Surmont oil sands have one of the largest undeveloped reserves in North America and provides ConocoPhillips with access to important resources and technology. Analysts believe that this acquisition will help ConocoPhillips to strengthen its presence in the Canadian oil market and increase its overall profits.
The company’s stock has responded positively to the news and its short-term performance looks promising. Investors are encouraged to look into this investment opportunity and consider whether it is suitable for their portfolio.
