ConocoPhillips Shares Surge 5.25% on Oil Price Rally

Strategic Insights -

ConocoPhillips shares are seeing a significant boost after oil prices rallied from their early dip on Monday. The price reversal is attributed to a U.S. government report showing a 1% decline in monthly crude production to 9.3 million per day, according to the Energy Information Administration. Additionally, an OPEC bulletin recognized the global oversupply glut as the trigger for falling prices, sending oil prices upwards. TheStreet Ratings team has rated ConocoPhillips as a Hold, citing both strengths and weaknesses in the company's financial performance.

Key Takeaways:

  • ConocoPhillips shares are up 5.25% to $49.28 in afternoon trading on Monday, following a rally in oil prices.
  • The U.S. government report showed a 1% decline in monthly crude production to 9.3 million per day, as per the Energy Information Administration.
  • The OPEC bulletin recognized the global oversupply glut as the trigger for falling prices, which helped lift energy prices.
  • ConocoPhillips has a debt-to-equity ratio of 0.51, which is low and below the industry average.
  • The company maintains an adequate quick ratio of 1.03, illustrating its ability to avoid short-term cash problems.
  • ConocoPhillips has a gross profit margin of 36.86%, which is considered strong.
  • However, the net profit margin of -2.15% trails the industry average, and the company's revenue has declined by 40.0% in the same quarter one year prior.
  • Earnings per share have declined over the last two years, and the market is expecting a contraction of 100.9% in earnings for the next year.

Statistics:

  • ConocoPhillips shares are up 5.25% to $49.28 in afternoon trading on Monday.
  • Oil prices rallied, with Brent crude up 7.53% to $53.82 per barrel and West Texas crude up 8.03% to $48.85 per barrel.
  • U.S. crude production declined by 1% to 9.3 million per day, according to the Energy Information Administration.
  • ConocoPhillips has a debt-to-equity ratio of 0.51, which is low and below the industry average.
  • The company maintains an adequate quick ratio of 1.03.
  • ConocoPhillips has a gross profit margin of 36.86%.
  • The company's net profit margin is -2.15%, which trails the industry average.
  • Revenue declined by 40.0% in the same quarter one year prior.

Sources:

  • TheStreet (http://www.thestreet.com)
  • CNBC (http://www.cnbc.com)
  • Energy Information Administration (http://www.eia.gov)
  • TheStreet Ratings Team (http://www.thestreet.com/ratings)