Jefferies Reports ConocoPhillips Solid But Downstream Disposal Remains Elusive

According to Jefferies, ConocoPhillips COP is solid but downstream disposal remains elusive. Jefferies reported that COP delivered a solid strategy update, although with little that was really new or could act as a significant near-term catalyst. “In particular the long-awaited significant downstream disposal remains elusive, although when enacted this should raise returns substantially. The overall path of the business plan remains as set out at the start of COP's transformation process; it largely continues to deliver on these promises. Our valuation of COP is based on Sum-of-Parts, which we have upgraded to US$87.5 following the update. The key risk is the whether COP can indeed dispose of a significant part of its refining business.” ConocoPhillips closed yesterday at $78.54.