Is ConocoPhillips Ready for a Rebound?
Since the oil and gas downturn of 2015, shareholders of companies large and small have pressured management to tighten spending in order to chart a course for consistency. ConocoPhillips' (NYSE: COP) prudence and cost-conscious behavior are tailor-made for this paradigm shift.
On the other hand, many companies have largely ignored tightening their spending and paid the price. Take Occidental Petroleum (NYSE: OXY) for example. Oxy's recent gun slinging acquisition of Anadarko was meant to be a courageous act of heroism to drive long term efficiencies in West Texas' booming Permian Basin, the largest oilfield in North America. Investors don't seem to be ready to give Oxy the benefit of the doubt, and as such, the stock has plummeted to a 12-year-low while desperately struggling to maintain a ~7% dividend.
Meanwhile, ConocoPhillips only pays a 2.3% dividend, has barely any Permian assets, but is widely regarded as one of the most, if not the most, disciplined United States E&P company. CEO Ryan Lance has repeatedly said that he will not chase expensive Permian deals, opting instead to say "We're sticking to our plan".
Source Fool.com
