Summary
ConocoPhillips is the largest exploration and production company in the world, with conventional, unconventional, and oil sands reserves.
The company has been actively focused on reducing production costs and can currently extract all of its reserves profitably using a 10% discount rate.
The company's LNG projects in Qatar and Australia could position it well to export natural gas to the thirsty markets of Asia.
ConocoPhillips should increase its production from its conventional resources by at least 14.5% over the next three years, boosting revenue and cash flow.
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On Wednesday, September 5, 2018, exploration and production major ConocoPhillips (COP) gave a presentation at the Barclays CEO Energy-Power Conference. ConocoPhillips did not devote much time to discussing the conditions in the broader industry, which is admittedly a little unusual for a presentation such as this, but instead focused solely on its own investment proposition. Thus, investors with some understanding of current developments in the oil and gas industry will likely get more out of this presentation but it's still advisable for everyone to review it as part of their due diligence of the company. As always, however, I will provide a summary of the presentation as well as add my own insights to it throughout the remainder of this article.
ConocoPhillips is currently the largest independent exploration and production company in the world, producing an average of 1.2 million barrels of oil equivalent per day. This is roughly evenly split between oil and natural gas (including natural gas liquids).
