Company Profile
ConocoPhillips is one of the largest American multinational energy Corporations engaged in the exploration, production, transportation and marketing of crude oil, gas, petroleum and other products. ConocoPhillip is a public company traded as NYSE: COP. The company was founded in 1875 by Frank Phillips, headquartered in Houston Energy Corridor, Houston Texas, USA.
ConocoPhillips (COP) Extended Graph Analysis
1. COP CASH FLOW
2015 | 2016 | 2017 | 2018 | 2019 | TTM | |
Net cash flow provided by operating activites | 7,572,000,000 | 4,403,000,000 | 7,077,000,000 | 12,934,000,000 | 11,104,000,000 | 11,104,000,000 |
Net cash used for investing activities | -8,655,000,000 | -3,859,000,000 | 7,762,000,000 | -3,843,000,000 | -6,618,000,000 | -6,618,000,000 |
Net cash provided by (used for) financing activities | -1,429,000,000 | 764,000,000 | -12,356,000,000 | -9,359,000,000 | -5,229,000,000 | -5,229,000,000 |
Capital expenditure | -10,050,000,000 | -4,869,000,000 | -4,591,000,000 | -6,750,000,000 | -6,636,000,000 | -6,636,000,000 |
Free cash flow | -2,478,000,000 | -466,000,000 | 2,486,000,000 | 6,184,000,000 | 4,468,000,000 | 4,468,000,000 |
Working Capital | -467,000,000 | 1,700,000,000 | 7,115,000,000 | 5,879,000,000 | 9,870,000,000 | 9,870,000,000 |
Facts:
- Cash provided by operating activities was $11.104 billion in the trailing twelve months.
- Cash used for investing activities were -$6.6 billion in the trailing twelve months.
- Net cash used for financing activities were -$5 billion in the trailing twelve months.
- Capital expenditures were -$6.6 billion in the trailing twelve months.
- Free cash flow was $4.5 billion in the trailing twelve months.
- Working capital was $9.87 billion in the trailing twelve months.
Explanation:
- Cash provided by operating activities is erratic in movement in the last five years. It has a negative growth of 14% from 2018.
- Cash used for investment activities are investment in property, plant and equipment.
- Cash provided by financing activities are debt repayment, common stock repurchased and dividends paid.
- Capital expenditures are investment in property, plant and equipment.
- Free cash flow was erratic in movement in the last five years and has a negative growth of 28% from 2018.
- Working capital grew 68% in the last five years.
Interpretation
The cash flow statements were stable although there was negative growth within five years period. The company has the ability to provide cash from operations in five years and has not seen any negative cash from operations in five years.
2. COP BALANCE SHEET
2015 | 2016 | 2017 | 2018 | 2019 | |
Total cash | 2,368,000,000 | 3,660,000,000 | 10,097,000,000 | 7,625,000,000 | 10,227,000,000 |
Current Assets | 8,789,000,000 | 8,609,000,000 | 16,512,000,000 | 13,274,000,000 | 16,913,000,000 |
Net property, plant and equipment | 66,446,000,000 | 58,331,000,000 | 45,683,000,000 | 45,698,000,000 | 42,269,000,000 |
Total non-current assets | 88,695,000,000 | 81,163,000,000 | 56,850,000,000 | 56,706,000,000 | 53,601,000,000 |
Total assets | 97,484,000,000 | 89,772,000,000 | 73,362,000,000 | 69,980,000,000 | 70,514,000,000 |
Current liabilities | 9,256,000,000 | 6,909,000,000 | 9,397,000,000 | 7,395,000,000 | 7,043,000,000 |
Non-current liabilities | 48,466,000,000 | 47,889,000,000 | 33,358,000,000 | 30,646,000,000 | 28,490,000,000 |
Total liabilities | 57,722,000,000 | 54,798,000,000 | 42,755,000,000 | 38,041,000,000 | 35,533,000,000 |
Retained earnings | 36,414,000,000 | 31,548,000,000 | 29,391,000,000 | 34,010,000,000 | 39,742,000,000 |
Stockholders equity | 39,762,000,000 | 34,974,000,000 | 30,607,000,000 | 31,939,000,000 | 34,981,000,000 |
Facts:
- Cash was $10 billion in 2019.
- Current assets were $16.9 billion in 2019.
- Net property, plant and equipment was $42 billion in 2019.
- Non-current assets were $53.6 billion in 2019.
- Total assets were $70.5 billion in 2019.
- Current liabilities were $7 billion in 2019.
- Non-current liabilities $28 billion in 2019.
- Total liabilities were $35.5 billion in 2019.
- Retained earnings were $39.7 billion in 2019.
- Stockholders equity was $35 billion in 2019.
Explanation
- Cash represents 15% of total assets.
- Current assets represent 24% of total assets.
- Net property, plant and equipment represent 60% of total assets.
- Non-current assets represent 76% of total assets.
- Total assets grew 0.76% in one year, 2018 to 2019.
- Current liabilities represent 20% of the total liabilities.
- Non-current liabilities represent 80% of the total liabilities.
- Total liabilities represents 50% of the total liabilities and stockholders equity.
- Stockholders equity represents 50% of the total liabilities and equity.
Interpretation
The company is liquid and financially healthy. The balance sheet is strong and stable.
3. COP INCOME AND MARKET
2015 | 2016 | 2017 | 2018 | 2019 | TTM | |
Revenue | 29,564,000,000 | 23,693,000,000 | 29,106,000,000 | 36,417,000,000 | 32,567,000,000 | 32,567,000,000 |
EBIT | -5,440,000,000 | -4,634,000,000 | 2,360,000,000 | 8,859,000,000 | 7,278,000,000 | 7,278,000,000 |
Net Income | -4,428,000,000 | -3,615,000,000 | -855,000,000 | 6,257,000,000 | 7,189,000,000 | 7,189,000,000 |
EBITDA | 2,794,000,000 | 4,777,000,000 | 5,328,000,000 | 16,664,000,000 | 16,392,000,000 | 16,392,000,000 |
Market Capitalization | 57,709,000,000 | 62,125,000,000 | 65,622,000,000 | 70,976,000,000 | 70,549,000,000 | 52,348,000,000 |
Intrinsic Value | 106,536,316,910 | 184,383,385,632 | 323,869,764,451 | 218,122,508,960 | 115,498,848,453 | 167,935,607,654 |
Facts:
- Revenue was $33 billion in the trailing twelve months.
- EBIT was $7 billion in the trailing twelve months.
- Net income was $7 billion the trailing twelve months.
- EBITDA was $16 billion in the trailing twelve months.
- Market capitalization was $52.348 billion in the trailing twelve months.
- Intrinsic value was $168 billion in the trailing twelve months.
Explanation
- Revenue was down by 11% from 2018 to 2019.
- EBIT represents 22% of revenue.
- Net income represents 22% of revenue.
- EBITDA represents 50% of revenue.
- Market capitalization was down 28% from 2019 to the trailing twelve months.
- Intrinsic value was up by more than 200% of the market capitalization.
Interpretation
The earnings of the company shows improvements in the last three years. Bottomline was impressive.
4. COP FINANCIAL RATIOS
2015 | 2016 | 2017 | 2018 | 2019 | TTM | |
Asset turnover (average) | 0.28 | 0.25 | 0.36 | 0.51 | 0.46 | 0.46 |
Return on assets % | -4.14 | -3.86 | -1.05 | 8.73 | 10.23 | 10.23 |
Return on equity % | -9.66 | -9.67 | -2.61 | 20.01 | 21.49 | 21.49 |
Debt/Equity | 0.59 | 0.75 | 0.56 | 0.47 | 0.42 | 0.42 |
Return on invested capital % | -5.61 | -4.49 | -0.47 | 13.7 | 15.82 | 15.82 |
Interest coverage | -6.87 | -3.44 | -1.38 | 14.57 | 13.24 | 13.24 |
Facts:
- Asset turnover was averaging 0.46 in the trailing twelve months.
- Return on assets was 10.23% in the trailing twelve months.
- Return on equity was 21.49% in the trailing twelve months
- Debt/Equity was 0.42 in the trailing twelve months.
- Return on invested capital was 15.82% in the trailing twelve months.
- Interest coverage was 13.24 in the trailing twelve months.
Explanation
- Asset turnover indicates that for every $1 invested in assets, COP generated 46 cents of sales.
- Return on assets indicates that every $1 invested in assets, the company produced 10.23 cents of net income.
- Return on equity indicates that for every $1 invested in equity, it generated 21.49 cents of earnings.
- Debt/Equity means that for every dollar in equity COP has 42 cents in leverage.
- Return on invested capital means the percent of return on the invested capital.
- Interest coverage means the company has the ability to pay its current interest in cash 13 times more on due date.
Interpretation
The company’s financial ratios were impressive. The company is healthy and profitable.
5. COP KEY EXECUTIVE COMPENSATION
2014 | 2015 | 2016 | 2017 | 2018 | |
Key Executive Compensation | |||||
Salary | 5,653,527 | 5,671,032 | 5,818,782 | 5,868,032 | 6,046,315 |
Bonus | 0 | 0 | 0 | 0 | 200,000 |
Annual other income | 0 | 0 | 0 | 0 | 0 |
Restricted Stock Award | 15,271,390 | 15,906,476 | 15,850,148 | 17,274,323 | 30,769,372 |
Securities options | 13,426,434 | 13,892,148 | 10,602,130 | 11,492,442 | 0 |
LTIP Payout | 0 | 0 | 0 | 0 | 0 |
Non-Equity Compensation | 8,992,090 | 6,457,004 | 6+904518 | 12,568,554 | 12,679,435 |
Other compensation | 1,021,157 | 798,083 | 590,167 | 853,753 | 4,097,176 |
Total | 60,785,066 | 49,678,375 | 48,458,456 | 55,612,133 | 67,594,977 |
Ryan M. Lance/Chairman of the Board and CEO
|
|||||
Salary | 1,700,000 | 1,700,000 | 1,700,000 | 1,700,000 | 1,700,000 |
Bonus | 0 | 0 | 0 | 0 | 0 |
Annual other income | 0 | 0 | 0 | 0 | 0 |
Restricted Stock Award | 6,116,797 | 6,630,693 | 6,607,217 | 6,993,660 | 11,006,296 |
Securities options | 5,790,798 | 5,790,780 | 4,419,261 | 4,652,424 | 0 |
LTIP Payout | 0 | 0 | 0 | 0 | 0 |
Non-Equity Compensation | 3,568,640 | 2,524,160 | 2,638,400 | 4,596,800 | 4,868,800 |
Other compensation | 467,776 | 301,786 | 245,437 | 327,393 | 372,815 |
Total | 27,577,071 | 21,339,719 | 19,212,038 | 21,848,930 | 23,405,270 |
Don E Wallette/Executive VP and CFO | |||||
Salary | 874,000 | 874,000 | 939,550 | 961,400 | 985,444 |
Bonus | 0 | 0 | 0 | 0 | 1 |
Annual other income | 0 | 0 | 0 | 0 | 0 |
Restricted Stock Award | 1,800,494 | 1,951,740 | 1,944,837 | 2,264,449 | 3,563,725 |
Securities options | 1,704,492 | 1,704,798 | 1,301,146 | 1,506,438 | 0 |
LTIP Payout | 0 | 0 | 0 | 0 | 0 |
Non-Equity Compensation | 1,102,988 | 811,072 | 911,364 | 1,720,906 | 1,763,945 |
Other compensation | 1,333,181 | 85,414 | 61,530 | 109,606 | 109,403 |
Total | 7,878,314 | 6,518,635 | 7,406,824 | 9,498,081 | 10,272,497 |
Alan Hirshberg/EVP, Production Drilling & Projects
|
|||||
Salary | 1,085,667 | 1,096,000 | 1,178,200 | 1,205,600 | 1,205,600 |
Bonus | 0 | 0 | 0 | 0 | 0 |
Annual other income | 0 | 0 | 0 | 0 | 0 |
Restricted Stock Award | 3,219,979 | 2,761,283 | 2,751,504 | 3,203,706 | 5,040,839 |
Securities options | 2,016,711 | 2,411,712 | 1,840,685 | 2,131,596 | 0 |
LTIP Payout | 0 | 0 | 0 | 0 | 0 |
Non-Equity Compensation | 1,602,444 | 1,169,651 | 1,314,282 | 2,481,728 | 2,343,084 |
Other compensation | 146,230 | 159,072 | 121,457 | 170,957 | 156,827 |
Total | 11,747,432 | 8,787,738 | 9,468,653 | 9,632,808 | 12,970,551 |
Matthew J. Fox/EVP and COO | |||||
Salary | 1,241,000 | 1,241,000 | 1,241,000 | 1,241,000 | 1,241,000 |
Bonus | 0 | 0 | 0 | 0 | 0 |
Annual other income | 0 | 0 | 0 | 0 | 0 |
Restricted Stock Award | 2,884,300 | 3,126,619 | 3,115,552 | 3,297,776 | 5,189,837 |
Securities options | 2,730,645 | 2,730,348 | 2,083,774 | 2,194,020 | 0 |
LTIP Payout | 0 | 0 | 0 | 0 | 0 |
Non-Equity Compensation | 1,872,421 | 1,324,395 | 1,384,336 | 2,625,956 | 2,554,599 |
Other compensation | 177,039 | 159,327 | 91,371 | 149,519 | 150,731 |
Total | 9,323,404 | 8,707,373 | 8,330,391 | 9,946,434 | 9,394,458 |
Janet L Carrig/Former Senior VP, Legal General Counsel & Corporate ecretary
|
|||||
Salary | 752,860 | 760,032 | 760,032 | 760,032 | 672,333 |
Bonus | 0 | 0 | 0 | 0 | 0 |
Annual other income | 0 | 0 | 0 | 0 | 0 |
Restricted Stock Award | 1,249,820 | 1,436,141 | 1,431,038 | 1,514,732 | 2,383,843 |
Securities options | 1,183,788 | 1,254,510 | 957,264 | 1,007,964 | 0 |
LTIP Payout | 0 | 0 | 0 | 0 | 0 |
Non-Equity Compensation | 845,597 | 627,726 | 656,136 | 1,143,164 | 806,641 |
Other compensation | 96,931 | 92,484 | 70,372 | 96,278 | 3,281,368 |
Total | 4,258,845 | 4,324,910 | 4,040,550 | 4,685,880 | 7,144,185 |
Kelly Brunetti Rose/Senior VP, Legal General Counsel & Corporate Secretary
|
|||||
Salary | 241,938 | ||||
Bonus | 200,000 | ||||
Annual other income | 0 | ||||
Restricted Stock Award | 3,583,832 | ||||
Securities options | 0 | ||||
LTIP Payout | 0 | ||||
Non-Equity Compensation | 342,366 | ||||
Other compensation | 26,031 | ||||
Total | 4,407,016 |
Facts:
- The total key executive compensation was $67.594,977 in 2018.
- Ryan M. Lance, Chairman of the Board and CEO compensation was $23,405,270 in 2018.
- Don E. Wallette, EVP and CFO compensation was $10,292,497 in 2018.
- Alan Hirshberg, EVP Production Drilling and Project compensation was $12,970,551 in 2018.
- Mathew J. Fox, EVP and COO compensation was $9,394,458 in 2018.
- Janet L. Carrig, Former Senior VP, Legal General Counsel & Corporate Secretary compensation was $7,144,185 in 2018.
- Kelly Brunetti Rose/Senior VP, Legal General Counsel & Corporate Secretary compensation was $4,407,016 in 2018.
Explanation
- The total key executive compensation represents 0.94% of the net income.
- CEO compensation represents 35% of the total key executive compensation.
- CFO compensation represents 15% of the total key executive compensation.
- EVP Production Drilling and Project compensation represents 19% of the total key executive compensation.
- EVP and COO compensation represents 14% of the total key executive compensation.
- Former Senior VP, Legal General Counsel & Corporate Secretary compensation represents 11% of the total key executive compensation.
- Senior VP, Legal General Counsel & Corporate Secretary compensation represents 7% of the total key executive compensation.
Interpretation
The key executive compensation was less than 1 percent which is fair enough for the compensation of the executives.
6. COP LOBBYING AND CONTRIBUTIONS
Period | Amount | Period | Amount |
2020 | 1,473,459 | 2008 | 8,459,053 |
2019 | 4,870,000 | 2007 | 4,089,568 |
2018 | 3,080,000 | 2006 | 2,038,291 |
2017 | 3,010,000 | 2005 | 5,218,084 |
2016 | 2,498,000 | 2004 | 2,670,438 |
2015 | 3,135,583 | 2003 | 1,380,000 |
2014 | 3,969,840 | 2002 | 1,157,000 |
2013 | 4,242,353 | 2001 | 878,639 |
2012 | 3,863,736 | 2000 | 1,235,159 |
2011 | 20,557,043 | 1999 | 1,340,812 |
2010 | 19,626,382 | 1998 | 10,000 |
2009 | 18,069,858 |
Explanation
ConocoPhillips has been spending annual lobbying and contributions since 1998. The amount varies annually. A Note from OpenSecrets is quoted as follows:
“NOTE: Figures on this page are calculations by the Center for Responsive Politics based on data from the Senate Office of Public Records. Data for the most recent year was downloaded on January 23, 2020 and includes spending from January 1 – December 31. Prior years include spending from January through December.”
Source: OpenSecret.org Center for Responsive Politics
7. COP FINANCIAL STRENGTH
DATA
Working capital | 9,870,000,000 |
Total assets | 70,514,000,000 |
Sales | 32,567,000,000 |
EBIT | 7,278,000,000 |
Market value of equity | $52,348,000,000 |
Book value of total liabilities | 35,533,000,000 |
Retained earnings | 39,742,000,000 |
CALCULATION
Ratio | Score | Result | |
A – Working Capital / Total Assets | 0.1400 | 1.20 | 0.17 |
B – Retained Earnings / Total Assets | 0.56 | 1.40 | 0.79 |
C – EBIT / Total Assets | 0.10 | 3.30 | 0.34 |
D – Market Value of Equity / Book Value of Total Liabilities | 1.47 | 0.60 | 0.88 |
E – Sales / Total Assets | 0.46 | 1.0 | 0.46 |
Z-Score | 2.64 |
Formula: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E
Explanation:
Z-Score is a statistical measurement that compares data points from different sets of data to find correlations. This measurement by Dr. Edward Altman is a significant measure in determining the financial strength of the company because it relies on different weighted financial liquidity and profitability metrics to come up with the overall score. This measure indicates the probability of bankruptcy.
Interpretation
The Z-Score of COP was 2.64. According to Dr. Edward Altman a grading scale of 1.8 – 3.0 is more likely to declare bankruptcy. The figures used above are based on the latest financial reports. The Altman score weights different profitability and liquidity metrics to arrive at the overall score. This measurement is not calculated for the purpose of estimating the company will declare bankruptcy but it helps in comparing other companies that have become insolvent.
Hence, this measurement categorized the profitability or return on investment, liquidity, leverage and the efficiency in operating.
Conclusion
ConocoPhillips has been in the industry for more than a century and has been managed successfully. The company is stable and has a strong balance sheet and is profitable.
CITATION
http://www.conocophillips.com/
https://www.opensecrets.org/federal-lobbying/clients/summary?cycle=2019&id=D000000303
https://www.morningstar.com/stocks/xnys/cop/quote
Researched and written by Criselda
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