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Petroleum industry

ConocoPhillips Shares Decline Amid Falling Oil Prices and Oversupply Concerns

Strategic Insights

— 1 min read

ConocoPhillips shares dipped 0.51% to $49.52 on Monday as crude prices continued to plummet, despite Baker Hughes' report of a fourth consecutive week of rising US oil rigs. The oversupply of oil has contributed to a 50% drop in prices over the past 14 months, and the rig count signals that the issue is not abating. TheStreet Ratings team has rated ConocoPhillips a Hold, citing a mix of strengths and weaknesses, including a solid financial position and expanding profit margins, but also feeble growth in earnings per share and deteriorating net income.

Key Takeaways:

  • ConocoPhillips shares are down 0.51% to $49.52 in afternoon trading on Monday, due to falling crude prices.
  • Crude prices continue to decline, with light, sweet crude for September delivery down 0.45% to $42.31 per barrel and Brent crude for September delivery down 0.12% to $49.13 per barrel.
  • The number of US oil rigs rose for the fourth consecutive week, according to Baker Hughes, indicating a global oversupply of oil.
  • TheStreet Ratings team rates ConocoPhillips as a Hold, citing a mix of strengths and weaknesses.
  • The company's debt-to-equity ratio is low at 0.51, and its quick ratio is adequate at 1.03, illustrating successful management of debt levels.
  • ConocoPhillips has a strong gross profit margin of 36.86%, but this has decreased from the same period last year.
  • The company's net profit margin trails the industry average at -2.15%.
  • ConocoPhillips has underperformed the industry average in terms of revenue, with a 40.0% decline in the past year.

Statistics:

  • January 2023: ConocoPhillips shares at $49.52
  • 14 months ago: Oil prices dropped by 50%
  • 4 weeks ago: US oil rigs rose for the fourth consecutive week
  • Industry average debt-to-equity ratio: higher than ConocoPhillips' 0.51
  • Industry average quick ratio: higher than ConocoPhillips' 1.03
  • ConocoPhillips' gross profit margin: 36.86% (decreased from previous year)
  • ConocoPhillips' net profit margin: -2.15% (trails industry average)

Sources:

  • TheStreet: [http://www.thestreet.com](http://www.thestreet.com)
  • ConocoPhillips: [COP](http://www.conocophillips.com)
  • Baker Hughes: [BHI](http://www.bakerhughes.com)
  • TheStreet Ratings: [COP Ratings Report](http://secure2.thestreet.com/cap/prm.do?OID=023499&ticker=COP)

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