They actually cut it!! Now there'll be hell to pay for employees...
13 replies (most recent on top)
dumping COP stock last year more recently is too late, and a losing proposition. I'm hanging on and will buy more when it gets below $30/share.
Even after slashing dividend ConocoPhillips has a finding gap for 2016
http://www.barrons.com/articles/BL-INCOMB-8384
Yes, but that also assumes no asset sales and no debt burden - $42 is the breakeven with no return to shareholders and not paying bondholders, not a long term proposition.
So, what you are saying is that ConocoPhillips needs an oil price >$42 with no dividend and no growth.
Looking at the cashflow statement for Q4 : CFO - CAPEX is ($0.65Bn). With Dividends falling from $0.9 to $0.3 there is still a shortfall of ($0.35Bn) per quarter not including CFI (changes in debt, interest and asset sales). Bottom line with a realized oil price of $42 in Q4 compared to a current proce of around $30 (with Q1 2015 realised price of $48 rolling off soon) the fundamental business is still underwater with the changes announced.
Note: The reductions in CAPEX announced make the cash change even but production will fall which is why I didn't include them.
@FMAP1J2-egw ... I can just buy more stock at a lower price, then when things turn around... cha ching!
... a different type if investment.
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cut divident
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crashed shareprice
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no growth
Most companies pay zero, unless a profit is made
I think you are correct. Going from $.74 per share to $.25 per share is a huge decrease. They are taking drastic measures right now. The 4th quarter of 2015 reported a 3.5 billion dollar loss.
I'm afraid it'll mean equal or worse reduction in payroll or benefits, etc. if dividend is #1 priority, why would they cut it and not touch employees? That was the intent of my post.
So what do you consider a major hit? Wall Street already thought the dividend was going to be cut. Investors usually act on the rumor.
Boys and girls hope you divested your COP stock as I did last year and the remaining last month! If you did not, I fell bad for you because, today the stock is going to take a major hit!
I am not trying to be smart mouth or stir the pot but I truly don't know what that means for us?