General Meeting (10/22/2014)

Market update

  • Market trend dip last week but bounced back since 10/21

General concern in the market: increasing interest rate

  • Third quarter report is out:
    • Boeing shows strong 3rd quarter result:  17% increase in earning
    • Yahoo’s earning exceeds expectation but not very impressive compared to other companies.
    • Snap chat start to raise more money.

Stock pitch



  • The world’s largest independent exploration and production (E&P) company.
  • Explore for, produce, transport and market crude oil, bitumen, natural gas, liquefied natural gas (LNG) and natural gas liquids on a worldwide basis.
  • Have operations and activities in 27 countries.
  • Six operating segments defined by geographic region: Alaska, Lower 48 and Latin America, Canada, Europe, Asia Pacific and Middle East, and Other International.
  • No dominating competitors for any segment of business.
  • Goal: 3-5 % annual production and margin growth.


  • Prices of crude oil, bitumen, natural gas, natural gas liquids and liquefied natural gas.
  • Decline in volume of reserves.
  • Expenses on compliance with existing and future environmental laws and regulations.
  • Change in domestic and worldwide political and economic environment.
  • Changes in governmental regulations may impose price controls and limitations on production of crude oil, natural gas, bitumen, and natural gas liquids.

Decline in oil price- strategic focus

  • Higher cash margin developments by reducing production cost.
  • ConocoPhillps produces oil and gas at comparatively low rate compare to other oil and gas producers.


  • 179%annual reserve placement in 2013
  • Continue adding deep water discoveries.
  • Increased production on reserves.

Balance sheet

  • Has enough assets to cover liability
  • Net tangible assets have been growing since 2012