NEW YORK (TheStreet) -- Shares of ConocoPhillips (COP) closed up 0.25% to $63.43 on Tuesday due to rising oil prices and the threat of a tropical storm heading towards oil refineries along the Gulf Coast, according to The Wall Street Journal.
U.S. crude prices were gaining by 0.81% to $60 per barrel, while Brent crude prices were falling 0.33% to $63.74 per barrel.
"There's an expectation that we're going to see another draw down in crude oil inventories," Price Futures Group's senior market analyst Phil Flynn told the Journal. "There's a sense U.S. production is peaking and we're getting a psychological bounce from Tropical Storm Bill."
The new storm is expected to disrupt operations on the Gulf Coast as it hosts about 45% of U.S. refineries, the Journal reports.
ConocoPhillips explores, produces, transports, and markets crude oil, bitumen, and natural gas.
Separately, TheStreet Ratings team rates CONOCOPHILLIPS as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CONOCOPHILLIPS (COP) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The current debt-to-equity ratio, 0.46, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.84 is somewhat weak and could be cause for future problems.
- COP, with its decline in revenue, underperformed when compared the industry average of 38.6%. Since the same quarter one year prior, revenues fell by 49.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for CONOCOPHILLIPS is currently lower than what is desirable, coming in at 33.14%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.52% trails that of the industry average.
- Net operating cash flow has significantly decreased to $1,870.00 million or 70.48% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: COP Ratings Report