reiterates without average crude prices at $65 brl, dividend CAN'T BE PAID WITHOUT MORE ASSET SALES.
loss (.05)now DOWNGRADES from 20 cents. 2016 is the big corrupt lie of $1.85 and I have bridge to sell you too.
THINK I'M JOKING ?
The 10 highest-paid executives in Houston last year all work in the energy industry and, despite domestic oil’s long and lingering swoon that began last summer, seven of them made more money than they did in high-flying 2013.
Topping the list is Ryan Lance, CEO and Chairman of ConocoPhillips, who received $27.6 million in total compensation, up 17.5 percent, and Phillips 66 CEO and Chairman Greg Garland, whose $24.5 million pay package was 23.5 percent higher than a year earlier.
The ratings downgrade reflects Moody's expectation that COP's financial leverage will remain high through 2017, with the company increasing its debt levels to fund negative free cash flow," commented Gretchen French, Moody's Vice President. "We positively note that in the face of a weak commodity price environment, COP has taken a number of steps to lower its cost structure, increase its financial and operating flexibility, and maintain a strong liquidity profile. However, the A2 rating positions the company with more flexibility within the rating and relative to its peers."
COP's A2 rating reflects the company's considerable scale and global geographic diversification of reserves and production, and a large cash flow profile generated from a wide base of mature producing assets. Its growing liquids production and oil-linked LNG projects support cash margins and cash flow. At the same time, COP's earnings remain subject to volatility and cyclicality. COP has a degree of production concentration in North American natural gas, estimated by Moody's to account for about a quarter of its total production in 2015, which will continue to be hurt by weak prices. COP's F&D unit costs are high, and given weak price realizations through 2016 from the current low commodity price environment, we expect low returns during this period.
We view COP's A2 rating as reasonably positioned relative to its independent exploration and production (E&P) peers, reflecting the benefit of a larger and more diversified reserves and production profile, but with a more elevated financial leverage profile. We expect COP's leverage metrics to deteriorate in 2015 and remain weak through 2016 relative to its E&P peers as it continues to maintain a high dividend payout through the downturn and a still heavy (albeit reduced) capital spending program in excess of internal cash flows. Based on Moody's price assumptions, we expect COP to be cash flow negative through 2017, although th
Aug 21, 2015 at 9:28 am EST
Moody’s investor’s service downgraded ConocoPhillips (NYSE:COP) credit trading for unsecured debt and other long term debt by one notch. The rating agency made the change on August 20, downgrading the rating from A1 to A2. Moody’s further changed its outlook for the company
The negative rating comes amid a weak crude oil environment. Weak demand from China
You forgot 2 things ! Record auto sales are due to a SUBPRIME AUTO LOAN BUBBLE, especially fueling GM's sales, and INVENTORY build of miles of parking lots of unsold cars you can find tons of pictures of if you search.
Rise in the crude oil inventory implies that supplies are rising or demand is falling. It would have a negative influence on crude oil prices.
The EIA reported that the nationwide crude oil stocks rose by 2.6 MMbbls to 456.2 MMbbls for the week ending August 14, 2015. These stocks are 100 MMbbls more than the five-year seasonal average.
The current crude oil stocks are 25% more than the levels of 362.5 MMbbls last year. They’re also near an 80-year high during this period of the year. This could add pressure to crude oil prices. However, prices rallied in yesterday’s trade. These record inventories and record supplies will continue to put downward pressure on crude oil prices. So, this rally could be short-lived.
Lance Roberts analyzes margin debt in the larger context that includes free cash accounts and credit balances in margin accounts. Essentially, he calculates the Credit Balance as the sum of Free Credit Cash Accounts and Credit Balances in Margin Accounts minus Margin Debt.
CURRENT CREDIT BALANCE IS -$225 BILLION (that's minus, folks) get it yet? Most leveraged market in history, where's the money to cover margin going to come from?
S&P says Conoco needs ave 65 oil or they need to BORROW OR SELL MO ASSets, pillage the Co more to pay dividend, it's nothing short of fiduciary corruption.
If you take the head & shoulders (weekly chart) break from 2013, that measures about 62 (neckline) to 85, so a measured move down is $39 fwiw. If you take the massive h&s from 2012 Phillips spinoff, that measures dire consequences for COP stock, even $25
Saudia Arabia exported 7.365 million bpd in June, up from 6.935 million bpd in May, industry data showed.
CEO and Chairman of ConocoPhillips, who received $27.6 million in total compensation for 2014 up 17.5 percent, one of the highest increases.
you mean "giving back BORROWED capital"? This yr COP will burn over $6Bil in cashflow after paying unconscionable dividend bordering on fiduciary corruption.