Buckle up kids, the cuts this round will be as deep as the last three rounds combined. The good news is that for whoever is left standing, they might actually operate like a real independent. Though I'm not holding my breath.
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The information in the comments to this post is golden. Stock analysts are surely reassessing their opinions of COP. There just is no "compelling" reason to own COP stock. It is just dead money. The company does indeed need to seek a merger.
For your information, Diamondback was IPO'd October 12, 2012, almost 5 years ago. Diamondback market cap is now 15.6 percent of COP market cap. Truly amazing. Their management, as well as the management of EOG, Pioneer, Chevron and Exxon, are definitely superior to what we have and have had for the past 5 years since COP and PSX traded separately.
Something must be done. Changes are required in the ELT (and BoD). Second quarter meeting w/ analysts may be interesting if the analysts stop w/ the softball questions.
-vqn & -ufw OUCH! The truth hurts. Thank you for exposing the truth.
Where do we go from here?
What do we do now?
Why would anyone invest in COP?
Is there a future for COP?
Why would anyone work for COP?
-ufw Hope your Power Point presentation to management goes well and you get that raise or even that promotion. Am sure the ELT will appreciate that it is they who are the source of COP dismal performance.
Can't run w/ the independents: EOG, Pioneer and Diamondback. Can't stay w/ the U.S. Majors: CVX and ExxonMobil. All have been relatively well managed during this oil price environment without destroying shareholder value or shareholder income. Indeed, it is not the oil price that is the source of COP poor performance. It is the management that is the source.
BoD and ELT: you are the source. We have been screaming this for years. Now, finally, you have been exposed for all to see. There must be a change. Confidence has been lost.
Another 20% downsize?
-vqn Informative post.
Regarding Phillips 66 (PSX), the share price INCREASED 138 percent from $33.74/s to $80.24/s
The following is a summary of the share price performance for the major integrated E&P companies Chevron (CVX) and ExxonMobil (XOM) during the same period May 1, 2012 through June 26, 2017:
CVX share price has DECREASED 4 percent from $108.27/s to $104.14/s
XOM share price..... DECREASED 7 percent from $87.04/s to $81.24/s
COP share price...... DECREASED 22 percent from $56.51/s to $44.23/s
Regarding the annual dividend during this period:
CVX annual dividend...INCREASED 33 percent from $3.24/s to $4.32/s
XOM annual dividend INCREASED 64 percent from $1.88/s to $3.08/s
COP annual dividend DECREASED 60 percent from $2.64/s to $1.06/s
Not only has COP grossly underperformed relative to the pure-play upstream independent E&P companies (EOG, PIoneer, Diamondback), COP has measurably underperformed relative to the major integrated E&P companies (Chevron & ExxonMobil).
Comparison of the share price & dividend performance during the period May 1, 2012 through June 26, 2017 confirms that COP share price and dividend performance is not due to oil price. It is COP management.
I intend to summarize this data in a Power Point presentation to show to management to convey how poorly managed we are. Maybe I will get a raise or even a promotion!
Diamondback first traded on October 12, 2012. COP & PSX traded as separate companies May 1, 2012. Diamondback market cap has increased to greater than $5 B, equivalent to approximately 10 percent of COP market cap.
The following is a summary of stock performance during the period May 1, 2012 through June 26, 2017 for the industry leading independent E&P performers (Diamondback: October 12, 2012 through June 26, 2017). COP (and PSX) are included for comparison:
Pioneer (PXD) share price ............. INCREASED 34 percent from $116/ s to $155/s
EOG share price ..............................INCREASED 57 percent from $56/s to $87/s
Diamondback (FANG) share price INCREASED 399 percent from $18/s to $87/s
COP share price .............................DECREASED 22 percent from $57/s to $44/s
Phillips 66 (PSX) share price ..........INCREASED 41percent from $33/s to $80/s
COP has significantly underperformed during this 5-year period. A Diamondback type of company structure and operating practice would indeed be a much desired alternative to what we have now. It is doubtful though that the current ELT can make the necessary changes. It is not oil prices that tanked COP share price (not to mention the 60 percent DECREASE in the annual dividend during this period from $2.64/s to the current $1.06/s). It is management. Most management teams would have been dismissed for this poor performance.
We don't want anyone from Burlington or to copy anything from Burlington, that is why we were stuck with so many hateful people.
Will see Travis this week-end. Will mention this Diamondback-COP concept. Suspect he may chuckle at the idea. He is very familiar w/ the internal workings of COP (suspect it was a factor in decision to leave and lead Diamondback)
"Sprit Values" is nothing more than an insult to what ever intelligence is left in this company. It has taken a while to say this benefit of the doubt an all but ELT is a joke.
Why not merge w/ Diamondback and let Stice (former COP via Burlington) do the necessary restructuring. He did a remarkable job of starting and building Diamondback. COP ELT may want to restructure as an independent but has been unsuccessful after 5 years. It is very doubtful the ELT is capable of implementing the necessary step change. COP is always trying to emulate, copy, imitate a successful company. Just incapable of being an innovative, industry-leading company. Need to stop quacking about "Spirit Values". It is embarrassing and sophomoric.
If you're right than I hope I'm fortunate enough to stay. I too find it difficult to believe we can actually take the needed steps; in which case I'm ready for my package!