ConocoPhillips (COP)

[Timothy Smith]

One of the things that the company has done is undertake an asset optimization program.

Through this program, ConocoPhillips plans to sell off its non-core assets and generate a large amount of capital that can be reinvested in the company for future growth or returned to shareholders.

For instance, in fiscal year 2013, the company sold off its interest in the Kashagan field, which resulted in proceeds of $10.2B. What the company has done with the proceeds from these sales is pay down some of its debt, which it has accumulated in order to juice up its growth.

During fiscal year 2014, ConocoPhillips's debt stood at $21.6B, down approximately $4B from the end of fiscal year 2011. Its net debt-to-capital ratio is actually much lower than the peer average by around 5%, which is substantial given the company's size.

By making its capital structure more flexible, it is now free to pursue other growth opportunities.