Case study :- CONOCO - PHILLIPS

Introduction : -
Conoco Phillips inc. was an American oil co. founded in 1875 as the continental oil
and the transportation company. It is an international energy corporation with its
headquarter located in the energy corridor district of Houston Texas in the United
States. It is the fifth largest pvt. Sector Energy Corporation in the world and is one of
the 6th super major vertically integrated oil company. Conoco-Phillips 66 and union 76
brands know its fuel stations. Conoco-Phillips was created through the merger of
Conoco. The merger between Conoco and Phillips was consummated on august 30
2002.
Our Business:
The company has four activities worldwide:
• Petroleum exploration and production.
• Petroleum refining, marketing, supply and transportation.
• Natural gas gathering, processing and marketing, including a 50% interest in
DCP midstream, LIC.
• Chemicals and plastics production and distribution through a 50% interest in
Chevron Phillips chemical company LLC.
Focus of the company : -
The focus of our power business is on developing project to support our E&P and
R&M strategies. While projects primarily in place to enable these strategies are
included within their respective segment project with their significant merchant
component are included in the emerging business segment.
ConocoPhillips Increased Divided and Announced Plans to Improve
Returns: -
In October, ConocoPhillips announced a $0.50 quaterly dividend, a 6% increase in its
dividend rate. ConocoPhillips has increasewd its quaterly dividend every year since
the formation of the company in 2002.
The capital program in 2010 is expected to be approximately$11 billion. At this level of
funding, the company will support exploration, production and reserve replacements,
while preserving its project portfolio for the future development. The company intends
to achieve its objective of replacing reserves through organic growth.

Table1.1
Year Sales (in million US $) Net Profit (in million US $)
2004 135076 8107
2005 179442 13640
2006 183650 15550
2007 194495 11891
2008 246182 (16998)