uploads///COP Q Revenue Mix

Here’s Why Crude Oil Prices Move ConocoPhillips Stock


Jan. 10 2017, Updated 9:06 a.m. ET

ConocoPhillips’s oil and gas revenue mix

In 3Q16, ConocoPhillips’s (COP) operating revenue from crude oil (USO), natural gas (UNG), bitumen, and natural gas liquids sales totaled ~$3.9 billion, a fall of ~10.0% from 3Q15.

As you can see in above graph, ConocoPhillips’s ~59.0%, or ~$2.3 billion, of E&P (exploration and production) revenues for 3Q16 came from crude oil sales. About 27.0%, or ~$1.1 billion, of E&P revenues came from natural gas sales, and ~8.0%, or ~$316.0 million, came from bitumen sales. Only ~6.0%, or ~$220.0 million, came from natural gas liquids sales.

That means almost ~67.0% of COP’s E&P revenues came from crude oil and bitumen sales. So COP stock has a stronger correlation with crude oil prices. To know more about how crude oil prices moved COP stock in 2016, refer to Part 1 of this series.

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Other upstream players

Other upstream companies such as Energen (EGN), EOG Resources (EOG), and Diamondback Energy (FANG) also generate most of their operating revenue from crude oil sales.


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