Perhaps no giant has been better at getting smaller than ConocoPhillips (COP). That’s impressive because former CEO James Mulva was credited with kicking off the integrated movement back in the late 1990s. The firm cast off its refining operations — as Phillips 66 (PSX) — and has once again made energy production its focus.
The bulk of that focus has been shale, shale and more shale.
Conoco has basically become a U.S.-focused producer by shedding billions of dollars in non-core assets. That has included liquefied natural gas facilities in Australia, Canadian oil sands holdings and assets in Indonesia and Nigeria … all while plowing big bucks back into U.S. fields such as the Eagle Ford and Bakken.
That’s certainly helped COP on the production front. Conoco’s combined production for the Eagle Ford, Bakken and Permian Basin jumped 47% year-over-year in the second quarter. All in all, the former integrated giant saw adjusted production of 1.51 million barrels of oil equivalent per day vs. 1.489 million BOE a year ago.
Shareholders have been happy as well — COP shares are up about 17% this year to edge out the market, and that doesn’t factor in its big 4% yield.