NEW YORK (TheStreet) -- Shares of ConocoPhillips (COP) are trading lower by 0.95% to $64.41 in afternoon trading Tuesday, following yesterday's announcement that the oil and gas producer will cut its 2015 capital budget by 20% from a year ago to $13.5 billion.
The reduction in capital reflects the company's decision to lower spending on major projects as global crude oil prices decline.
The move to cut spending is a clear sign that big energy companies are taking a second look at their projects costing billions of dollars as they face the fallout o lower oil prices, the Wall Street Journal reports.
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Houston, TX-based ConocoPhillips is the world's largest independent E&P company based on production and proved reserves, with operations in 27 countries.
Separately, TheStreet Ratings team rates CONOCOPHILLIPS as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CONOCOPHILLIPS (COP) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels, expanding profit margins, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."