Proudly displaying two venerable names of the US oil industry, ConocoPhillips is the #3 integrated oil and gas company in the US, behind Exxon Mobil and Chevron. The company explores for oil and gas in more than 30 countries and has proved reserves of 8.3 billion barrels of oil equivalent. It has a global refining capacity of more than 2.4 million barrels per day and manages 24,000 miles of common-carrier pipelines. The company also sells petroleum at 8,300 retail outlets in the US under the 76, Conoco, and Phillips 66 brands, and at 1,450 owned or dealer-owned gas stations in Europe. Other operations include chemicals, gas gathering, fuels technology, and power generation.
ConocoPhillips has a handful of operating segments: Exploration and Production (which conducts business worldwide); Midstream (gathering and processing of natural gas, and fractionating and marketing natural gas liquids in the US, Canada, and Trinidad, primarily through its 50% stake in DCP Midstream Partners); Refining and Marketing of crude oil and petroleum products, mainly in the US, Europe, and Asia; and Chemicals (manufacturing and marketing petrochemicals and plastics worldwide, primarily though its 50% stake in Chevron Phillips Chemical Company LLC). In addition, its Emerging Businesses segment handles the discovery and cultivation of new technologies related to natural gas conversion into clean fuels, technology solutions, power generation, and emerging technologies.
In 2010, as a result of the BP oil rig disaster in the Gulf of Mexico, the company teamed with Exxon Mobil, Chevron, and Royal Dutch Shell to form a $1 billion rapid-response joint venture with the capabilities to manage and contain future deepwater oil spills.
The recovering economy and higher commodity prices helped to lift the company's revenues in 2010. However, in order generate additional cash, the company has been selling off some of its assets. In 2010 ConocoPhillips sold its 9% stake in Canadian oil sands operator Syncrude to China Petroleum & Chemical Corp. for $4.7 billion. In 2011 it completed the sale of its 20% stake in LUKOIL as part of larger program to dispose of $10 billion of assets in order to pay down debt.
To add more value for investors, in 2011 ConocoPhillips announced plans to spin off its refining unit, creating two stand-alone publicly traded companies. The new downstream company will be named Phillips 66.
To raise cash, that year the company agreed to sell its stakes in two non-core US oil pipelines, Colonial and Seaway (the sale of the latter was completed in late 2011) for about $2 billion. It also agreed in 2012 to sell its Vietnam assets for about $1.3 billion.
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