MKG final papers

ConocoPhillips Company Profile

General Company Overview

ConocoPhillips is a multinational, integrated energy company. According to the size and locations of its operations, it is the third-largest integrated energy company in the United States (ConocoPhillips, 2016). The company is based on market capitalization on oil and gas reserved and productions. The company is considered the largest refiner in the United States. The company has the eighth-largest reserves and is the fourth in largest refiner in the world. Additionally, the company is known for its technological expertise in the deep water exploration and production of oil. The current advancement in technology such as the use of 3-D seismic technology and high-grade petroleum coke upgrading are used in reservoir management and oil exploitation. As an international corporation with its headquarters in Houston, Texas, the company operates in more than forty countries worldwide.

Regarding its size, the company is quantified to be the larger corporation with an approximately 35800 employees worldwide (ConocoPhillips, 2016). The company’s earnings and performance are vast and outstanding with an asset value worth $93 billion. Similarly, ConocoPhillips is among the public trading companies in the world and American market. It is listed on the New York Stock Exchange, Yahoo Finance and Google Finance among others. The core areas of the company’s operations are natural gas collection, processing, and marketing to the enterprises in the same industry. Secondly, the company has a greater synergy in petroleum exploration and production, as well as petroleum refining, marketing, and supply and transportation among others. Thirdly, the company trades on chemicals and plastics production and distribution under Chevron Phillips Chemical Company LLC. Lastly, the company is keen on venturing into new business worldwide.

Company History

ConocoPhillips Company was incorporated in November 2001 as an independent exploration and production company (ConocoPhillips, 2016). The company diversified in exploration, marketing, and distribution of crude oil, bitumen and natural gas among others. The categories through which the company operates enhance its performance in the industry. The company’ operations are categorized in in six segments that are defined by the geographical locations. The regions include; Alaska, Canada, Europe, Lower 48 and North Africa, as well as Asia Pacific and Middle East (ConocoPhillips, 2016). Regarding the company’s net worth, its portfolios include North American unconventional assets and oil sands assets in Canada. Conversely, the six segments of the company’s operations influence the portfolio spectra of the organization. Each region is treated differently on the economic level they endowed to. For instance, Alaska segment is majorly meant to explore for produce, transport, and marketing of crude oil and natural gas liquids among others.

Nevertheless, the company operates in other significant areas such as Kapurak Field and other four satellites fields. Additionally, other international segments include exploration activities in Colombia, Angola, and Senegal. The company is well-endowed with many oil exploration sites that make it more stable to satisfy the need of customers. ConocoPhillips Company holds exploration interest in two blocks such as Block 36 and Block 37 respectively. In this context, the size of the two block productions totals to approximately 2.5 million gross acres and many more areas worth its exploration. The company’s prospectus and explorers are determined to increase the exploration sites for the company. As a non-governmental corporation, ConocoPhillips strive to maintain ethical behaviors for the moral good of the public. There are many corporate responsibilities administered by the company. Similarly, the company reshapes oil industry by use of technology like 3-D seismic.

Company Strategy

The competitive landscape in the oil industry is more diverse or complex as other sectors. There are many challenges associated with business going international. To remain relevant and embrace in harmony in business operations within foreign countries, ConocoPhillips designs strategies that placed its competitive advantage at a higher notch. Among the strategic initiatives that company employs today include liquids- rich plays that are currently gaining grounds through the Eagle Ford, Bakken, and Permian plays. With this initiative, the company is projecting an average of 1.599 million barrels of oil. The estimation believed on the project to track and deliver an average annual production, as well as margin growth of 3-5% (ConocoPhillips, 2016). Additionally, the new strategy that shifts the interest of the company to Shale projects a different outcome in the enterprise. As the company appraises Shale areas for exploitation, the number of acres owned by the corporation is expected to increase shortly. This strategy is contrary to the peers' actions in Shale areas. The company has decided to do things differently to balance and accelerate production with value, thus accumulating yield with impressive results.

Company Competitive Advantage

According to company’s insight, the dynamics in oil industry requires sober competitive strategies that will address the entire challenges experienced by the stakeholders. One of the primary competitive advantages of the ConocoPhillips is the use of technology. The use of 3-D seismic in unconventional reservoirs and exploration management has placed the company in a better position to compete their peers. The deep water exploration requires advanced technological skills and equipment to minimize waste, thus aiding efficiency. The company views the use of technology as the agent of smart growth that play a pivotal role in establishing competitive advantage necessary to deliver quality services. Similarly, the use of technology improves the company’s returns, thus minimizes loss rate to the firm. Moreover, the company is directly involved in corporate social responsibilities in areas of their operations. They provide education, medical facilities, and public provision utilities like water to the society. This has created the sense of belonging and concerned, thus controlling larger market share and customer loyalty.

Company Financials

ConocoPhillips publish its financial reports in four quarters. the table below shows trend analysis.

Annual Financials for ConocoPhillips

The table above shows a section of financial reports for the company from 2011 to 2015 fiscal year (MarketWatch, 2016). The performance index of the company shows improvement in the operations of the company. While viewing the company’s financial ratios, the company’s profitability index in 2015 shows strong financial base, thus better performance. According to Google Finance, 2015 fiscal year recorded the lowest Diluted Normalized EPS. The New York Security Exchange shows the trading value of the company standing at $ 43.13 on the higher side and $ 41.46 on the lower side. Regarding the security prices, the performance index of the company is bitterly placed (GoogleFinance, 2016). Therefore, the company’s financial and general performance is relatively stable and worth investing in.

Robert Kaplan Balanced Score Card

To measure performance and quality of services offered to customers, ConocoPhillips make use of balance score card to streamline all their performance objectives. The company is determined to establish their employees’ safety operations to reduce risk. To efficiently achieve risk reduction, the company employ internal auditors who are highly trained to carry out both financial and nonfinancial auditing to the company. Auditing practices refer to assessment and verifications of financial performance and non-financial issues. Therefore, safety operations for employees remain the primary objective of the enterprise. Additionally, training and performance appraisal aids the organization to achieve the best results. Assessment of exploration sites by the experts also records on a high balance of score by the organization. The concept of balance of scorecard has been well used by the company especially while acquiring new ventures.

References

ConocoPhillips. (2016). Conocophjillips com[pany profile. Retrieved from Conocophillips Company: http://www.conocophillips.com/Pages/default.aspx?utm_source=Google&utm_medium=PaidSearch&utm_campaign=Branded&utm_content=Conoco_phillips&gclid=Cj0KEQjwx96-BRDyzY3GqcqZgcgBEiQANHd-nopYun5enaYd3TJLv7eNprLGarq0X4w5EFfWHIR2kXwaAsq58P8HAQ

GoogleFinance. (2016). ConocoPhillips Financial Summary. Retrieved from Google Finance; Financial Analysis and summary: https://www.google.com/finance?fstype=ii&q=NYSE:COP

MarketWatch. (2016). ConocoPhillips Annual Fiunancials Report. Retrieved from MarketWatch; New York Markets: http://www.marketwatch.com/investing/stock/cop/financials