ConocoPhillips:Cut It Out:Executing on Cost Structure Improvements
摘要： Despitepeer-leadingcash-flowbreak-eveneconomics(~$40-$45/bbl)overthemedium-term,executiononimproveme
Despite peer-leading cash-flow break-even economics (~$40-$45/bbl) over themedium-term, execution on improvements to COP's cost structure continue tosurprise to the upside. 1Q16 opex is down 23% relative to 1Q15 levels, while afurther $700mm cut to the budget is expected to set up a lower thananticipated cost base entering into 2017. With ample flexibility (followingrecent debt offerings) to accelerate activity into a sustained recovery, and withsignificant leverage to a rally in crude, we see significant medium-term FCFgrowth driving onshore re-investment and accelerated cash returns toshareholders - both positives for the shares in our view. Maintain Buy.
Despitepeer,leadingcash,flowbreak,eveneconomics,40
