Hello, Fool! | Login | Signup | My Fool
Nov 23, 2008 4:43 AM ET | Feedback | Site Changes | Help
An international, integrated energy company organized into six operating segments: Exploration and Production, Midstream, Refining and Marketing, LUKOIL Investment, Chemicals and Emerging Businesses.
View All Commentary (COP)
Recs
dcrednek (69.80) Submitted: 1/05/07 9:55 AM : Start Price: $63.37 COP Score: 20.07
Conoco Phillips (COP) could be the most undervalued company in the oil & gas sector right now. Here's my logic: COP now trade for $66.07 (1/5/07), a P/E of 6.36 and yield of 2.10%. The P/E for the sector is 11.25. So....if COP hits its earnings estimates of $9.37 for 07 and gets a reasonable P/E of 9-10, then COP should move to the $80-93 price range.
Report this Post Replies: 3 | Reply | Permalink
Oops! There appears to be a problem with your comment. Check to see if there's something you left out.
WCWlooky (95.70) Submitted: 1/23/07 3:03 PM
Recs: 0 | Rec This
If it is good enough for Mr. Buffet, than it is good enough for me.
Report this Post Reply
digdug62 (42.25) Submitted: 8/09/07 1:11 PM
The best way to value an E&P company is simply by dividing market cap by proved reserves in BOE. This will give you a $/BOE value. It is somewhat more complicated than this because you also have to consider "quality of reserves" which means the accessibility to infrastructure (barrels in remote or politically unstable areas are worth less), time it will take to get those barrels out of the ground (reserve life), and lifting and treating costs (impurities like sulphur are costly to remove). But this is a quick and easy way to start. With a little research it should be possible to normalize for "quality of reserves" and then you can make an educated judgement on where the cheapest barrels are hiding.
Terms & Conditions
RSS Headlines
Fool UK