Replies to post #286 on ConocoPhillips (COP)

[johnsyn]

very strong. New rumors/talks to drive it: 8:35 AM A consortium of India’s state-run energy companies have jointly bid to acquire stakes in oil sands assets owned by ConocoPhillips (COP) in Canada valued at ~$5B. New resources would help the Indian firms diversify their portfolios now focused on conventional maturing assets; COP seeks to sell ~50% of its stake in a half-dozen oil sands assets.

[Timothy Smith]

COP has a substantial yield, but until cash flow minus cap ex becomes positive, debt will increase to cover the shortfall.

This is unsustainable over the long-term and the viability of the dividend will be tied to management's ability to increase cash flow by upwards of 36% over the next 4 years to pay for both an aggressive cap ex program and a sizable dividend.