Financial Status and Policy of ConocoPhillips Case Study

Financial Status and polity of ConocoPhillips - Case Study ExampleIts refinement technology focuses on upgrading high-grade oil color coke and removing sulfur.With approximately 32,700 employees in 40 countries, it has assets of $171 billion with core competencies in petroleum exploration, production, refining, supply, marketing and transportation as comfortably as natural gas gathering and processing and chemicals and plastics production. The company has a 50 percent delight in Colorado-based natural gas liquid producer DCP Midstream, LLC and Texas-based petrochemical company Chevron Phillips Chemical Company LLC. This root will provide an assessment of the existing company in terms of its current status, including stock transaction and financial standing, and the issues that have significant effect on its performance.ConocoPhillips is actually the recent marriage between devil pioneer oil companies in the US, Conoco Inc. and Phillips Petroleum Company. The two companies mer ged on August 30, 2002 amidst some speculation that the $15.5 Billion deal was a necessary move for the two contenders to avoid being out-competed by larger petroleum companies. At the time of the merger, oil prices had taken a disastrous turn downward that imperil the survival of smaller gas companies. The merger was expected to save about $750 million in operating expense costs, mostly based on planned downsizing of some of the combined roster of 58,000 employees. (Analysts Phillips-Conoco merge to survive, 2001)Isaac senior Blake founded Conoco in November 25, 1875 as the Continental Oil and Transportation Co. that would bring in petroleum in bag to the pioneers of Ogden, Utah, making it more affordable and convenient for individual use. In the course of operations, Blake developed new uses for petroleum including benzene, ready mixed paints, birthday candles and paraffin chewing wax, but the focus was more on flatulency for use in automobiles. Continental built the first f illing station in the West in 1909. By 1913, Continental was the top petroleum marketer in the Rocky Mountain region and an drive by Standard Oil to take over the company was rebuffed by order of the Supreme Court. In 1929, Continental Oil merged with Oklahoma-based Marland Oil because each company could benefit from each others strengths, marketing realise how from the former and supply of crude oil for the latter and was named Continental Oil Company, assets including 3,000 wells and retail outlets in 30 states. Conoco stock began trading in the New York Stock Exchange in September 15, 1929, alone in time for the stock market crash. The company survived only by drastically cutting strike costs and expanding refinery capacity under the direction of Dan Moran. He was succeeded by Leonard F. McCollum who led Conoco overseas, acquiring oil field in Dubai and retail acquisitions in Europe. He diversified the company to such an extent that by 1972 Conoco was worthy more that $2.3 B illion in assets. On September 30, 1981, in the midst of political and economic ups and downs and a threatened hostile takeover, Conoco merged with DuPont, which resulted in the former becoming a wholly owned-subsidiary of the latter, until Conoco separated from Dupont in 1997 to become an independent oil company. (Conoco History, 2005)It was in 1905 that the Philips brothers hit their first oil well, eventually