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Financial Analysis of Conoco-Phillips

In: Business and Management

Submitted By JimmyWong
Words 6098
Pages 25
Table of Contents 1.0 Executive Summary ………………………………………………………………….. 3

2.0 Introduction …………………………………………………………………………… 4 3.1 ConocoPhillips ………………………………………………………………... 4 3.2 ExxonMobil …………………………………………………………………….. 4 3.3 Chevron ………………………………………………………………………... 5

3.0 Financial Analyses and Benchmarking ………………………………………….. 5 4.4 Accounting Standards ………………………………………………………. 5 4.5 Common size Income Statement …………………………………………. 6 4.6 Benchmarking with Financial Ratios ………………………………………. 7 4.7 Business Segments ……………………………………………………………. 19

4.0 Issues ……………………………………………………………………………………. 22

5.0 Recommendations ………………………………………………………………… 23

6.0 Conclusion …………………………………………………………………………... 24

7.0 References …………………………………………………………………………... 25

Appendices
Appendix 1 – Key Financial Data for COP, XOM and CVX
Appendix II – Financial Ratios

1.0 Executive Summary

ConocoPhillips has grown into the 3rd largest Integrated Oil and Gas Company in the US ever since the merger of Conoco and Phillips Petroleum in 2002. Since then, its market capitalization has grown 5 times to US$ 101 Bil with an asset base of US$155 Bil.

This report provides an insight to the Board of Directors of the financial performance of ConocoPhillips since 2002 and will be benchmarked against competitors in the industry to give a cross sectional analysis.

Whilst the growth of ConocoPhillips has been impressive over the last 10 years, earnings have not performed according to its peers in the industry. During this period, the Company had reported several impairments to its major assets and its earnings were eroded by the volatility of the crude oil and natural gas prices. These results have also unfolded some new challenges to Company in terms of financial gearing and the need to manage its cash…...

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