In today's rapidly changing and highly competitive business world, it is imperative for investors and industry observers to carefully assess companies before making investment choices. In this article, we will undertake a comprehensive industry comparison, evaluating ConocoPhillips COP vis-à-vis its key competitors in the Oil, Gas & Consumable Fuels industry. Through a detailed analysis of important financial indicators, market standing, and growth potential, our goal is to provide valuable insights and highlight company's performance in the industry.
ConocoPhillips Background
ConocoPhillips is a US-based independent exploration and production firm. In 2023, it produced 1.2 million barrels per day of oil and natural gas liquids and 3.1 billion cubic feet per day of natural gas, primarily from Alaska and the Lower 48 in the United States and Norway in Europe and several countries in Asia-Pacific and the Middle East. Proven reserves at year-end 2023 were 6.8 billion barrels of oil equivalent.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| ConocoPhillips | 12.25 | 2.57 | 2.31 | 4.69% | $6.3 | $4.26 | 10.27% |
| EOG Resources Inc | 9.67 | 2.44 | 3.02 | 5.85% | $3.18 | $4.23 | 10.42% |
| Hess Corp | 15.85 | 4 | 3.40 | 7.44% | $1.85 | $2.54 | 39.89% |
| Diamondback Energy Inc | 9.92 | 1.96 | 3.69 | 4.83% | $1.67 | $1.23 | 29.34% |
| Devon Energy Corp | 7.90 | 2.18 | 1.79 | 6.83% | $1.9 | $1.25 | 13.4% |
| EQT Corp | 21.50 | 1.29 | 3.16 | 0.06% | $0.49 | $0.32 | 4.31% |
| Coterra Energy Inc | 13.79 | 1.35 | 3.18 | 1.68% | $0.76 | $0.42 | 7.26% |
| Marathon Oil Corp | 10.81 | 1.38 | 2.46 | 3.12% | $1.06 | $0.7 | 12.26% |
| Ovintiv Inc | 5.98 | 1.09 | 1.12 | 3.3% | $1.15 | $1.29 | -9.1% |
| APA Corp | 3.02 | 1.90 | 1 | 13.47% | $1.62 | $1.16 | 41.59% |
| Permian Resources Corp | 10.65 | 1.19 | 1.72 | 3.07% | $0.89 | $0.62 | 99.89% |
| Chesapeake Energy Corp | 23.64 | 0.91 | 2 | -2.16% | $0.08 | $-0.21 | -64.55% |
| Chord Energy Corp | 7.20 | 1.04 | 1.50 | 3.05% | $0.53 | $0.36 | 38.22% |
| Antero Resources Corp | 103.42 | 1.20 | 2 | -0.94% | $0.13 | $0.02 | 3.86% |
| Range Resources Corp | 15.16 | 1.89 | 3.11 | 0.74% | $0.12 | $0.09 | -0.0% |
| Matador Resources Co | 7.18 | 1.50 | 2.08 | 5.06% | $0.59 | $0.4 | 31.59% |
| Civitas Resources Inc | 6.97 | 0.91 | 1.22 | 3.27% | $0.9 | $0.56 | 98.73% |
| Murphy Oil Corp | 9.77 | 1.06 | 1.70 | 2.4% | $0.43 | $0.27 | -1.46% |
| SM Energy Co | 6.40 | 1.32 | 2.12 | 5.58% | $0.47 | $0.32 | 15.9% |
| Magnolia Oil & Gas Corp | 12.10 | 2.55 | 3.52 | 5.36% | $0.24 | $0.18 | 20.13% |
| Vista Energy SAB de CV | 11.12 | 3.29 | 3.65 | 10.32% | $0.28 | $0.21 | 65.55% |
| California Resources Corp | 22.53 | 2.23 | 1.57 | 0.39% | $0.08 | $0.22 | -9.76% |
| Average | 15.93 | 1.75 | 2.33 | 3.94% | $0.88 | $0.77 | 21.31% |
By conducting an in-depth analysis of ConocoPhillips, we can identify the following trends:
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With a Price to Earnings ratio of 12.25, which is 0.77x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.
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It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 2.57 which exceeds the industry average by 1.47x.
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Based on its sales performance, the stock could be deemed undervalued with a Price to Sales ratio of 2.31, which is 0.99x the industry average.
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With a Return on Equity (ROE) of 4.69% that is 0.75% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.
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With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $6.3 Billion, which is 7.16x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.
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Compared to its industry, the company has higher gross profit of $4.26 Billion, which indicates 5.53x above the industry average, indicating stronger profitability and higher earnings from its core operations.
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The company's revenue growth of 10.27% is significantly lower compared to the industry average of 21.31%. This indicates a potential fall in the company's sales performance.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio gauges the extent to which a company has financed its operations through debt relative to equity.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
When comparing ConocoPhillips with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:
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Compared to its top 4 peers, ConocoPhillips has a stronger financial position indicated by its lower debt-to-equity ratio of 0.37.
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This suggests that the company relies less on debt financing and has a more favorable balance between debt and equity, which can be seen as a positive attribute by investors.
Key Takeaways
For ConocoPhillips in the Oil, Gas & Consumable Fuels industry, the PE ratio is low compared to peers, indicating potential undervaluation. The high PB ratio suggests a premium valuation based on its book value. A low PS ratio implies a favorable sales valuation. In terms of profitability, the high ROE, EBITDA, and gross profit reflect strong operational performance. However, the low revenue growth may indicate challenges in expanding market share compared to industry peers.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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