ConocoPhillips (COP)

ConocoPhillips, FCFE calculation

USD $ in millions

12 months ended	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Net income (loss) attributable to ConocoPhillips	(855)	(3,615)	(4,428)	6,869	9,156
Net income attributable to noncontrolling interests	62	56	57	69	59
Net noncash charges	7,855	8,443	11,965	10,159	6,538
Working capital adjustments	15	(481)	(22)	(505)	48
Net cash provided by operating activities	7,077	4,403	7,572	16,592	15,801
Capital expenditures and investments	(4,591)	(4,869)	(10,050)	(17,085)	(15,537)
Proceeds from asset dispositions	13,860	1,286	1,952	1,603	10,220
Issuance of debt	–	4,594	2,498	2,994	–
Repayment of debt	(7,876)	(2,251)	(103)	(2,014)	(946)
Free cash flow to equity (FCFE)	8,470	3,163	1,869	2,090	9,538

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to ConocoPhillips's equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	ConocoPhillips's FCFE increased from 2015 to 2016 and from 2016 to 2017.

ConocoPhillips, current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	1,162,095,308
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)	8,470
FCFE per share	7.29
Current share price (P)	69.41
Ratio
P/FCFE	9.52
Benchmarks
P/FCFE, Competitors
Chevron Corp.	–
EOG Resources Inc.	–
Exxon Mobil Corp.	24.25
Occidental Petroleum Corp.	42.71
Phillips 66	32.42
P/FCFE, Sector
Oil & Gas Producers	33.57
P/FCFE, Industry
Oil & Gas	39.04

If company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.

Otherwise, if company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

ConocoPhillips, historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
No. shares of common stock outstanding¹	1,174,577,506	1,235,832,469	1,236,202,726	1,231,461,668	1,226,104,592
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)²	8,470	3,163	1,869	2,090	9,538
FCFE per share⁴	7.21	2.56	1.51	1.70	7.78
Share price^1, 3	54.84	48.13	32.92	67.09	66.52
Ratio
P/FCFE⁵	7.60	18.81	21.77	39.53	8.55
Benchmarks
P/FCFE, Competitors
Chevron Corp.	–	95.23	237.62	59.08	40.87
EOG Resources Inc.	–	–	–	131.44	–
Exxon Mobil Corp.	23.57	32.86	25.82	19.65	18.12
Occidental Petroleum Corp.	37.42	38.51	–	–	23.44
Phillips 66	27.96	29.60	220.02	19.18	14.01
P/FCFE, Sector
Oil & Gas Producers	31.06	41.35	46.00	30.20	20.04
P/FCFE, Industry
Oil & Gas	37.65	64.16	22.88	24.44	18.55

¹ Data adjusted for splits and stock dividends.

³ Close price on the filing date of ConocoPhillips's Annual Report.

2017 Calculations

⁴ FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 8,470,000,000 ÷ 1,174,577,506 = 7.21

⁵ P/FCFE = Share price ÷ FCFE per share
= 54.84 ÷ 7.21 = 7.60

Ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders' equity.	ConocoPhillips's P/FCFE ratio declined from 2015 to 2016 and from 2016 to 2017.

Price to FCFE (P/FCFE)