After lagging the markets for much of 2013, ConocoPhillips' stock has now shown a couple strong months of performance. Since late April, ConocoPhillips is up about 15% compared to the S&P 500, which has gained only 4% and the Dow Jones, which is up 1%.
Operationally, ConocoPhillips has been performing well, with its North American assets meeting or exceeding production targets. Q3 2013 should mark the last quarter of Y/Y production declines, with Q4 2013 expected to benefit extensively from ConocoPhillips' increased capital spending.
Considering the recent increase in oil prices, its solid 4.20% yield, and expected production growth, ConocoPhillips seems to be set up for a strong second half of the year.
Even with the current run-up in its stock price, ConocoPhillips is still not an expensive stock.