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Strategies & Market Trends : Value Investing
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To: Paul Senior who wrote (49306)9/10/2012 11:21:03 AM
From: E_K_S  Read Replies (3) of 78753
 
Re: Conoco Phillips pipeline Co.

I did not realize that COP had such an extensive pipeline operation for both oil and NG. According to the Gas Journal chart I posted, COP has almost 6K miles of Oil pipelines ranking 4th for majors. I actually like their NG exposure w/ their terminal interests in Australia ( Australia and Timor-Leste) and continued investment in domestic NG liquids including their domestic processing facilities (as seen in the chart below).



COP has exposure in Canada including interests in oil sands projects too.

Therefore, I am looking to up my current holdings in COP. I plan to peel off shares in HES and MRO. I am still looking for a better entry point (below $55.00/share) so no rush as this is a sideways move. My premise is that COP may have better strategic "value" than HES and/or MRO as they sell assets that do not fit w/ their long term company investment into NG. The "whole" is worth more than it's parts.

Both MRO and HES have undervalued Oil & NG assets but may not have the management and/or long term strategic plan to bring the value to the shareholder. This is especially true w/ HES as management continues to be the high cost developer in several of their domestic shale holdings. I see their recent asset sale ( Hess to sell Azerbaijan assets to ONGC Videsh) as an opportunity for me to sell my high cost shares for a small gain.

EKS
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