ConocoPhillips: Gas company split a huge opportunity for investors
The separation of Conoco from Phillips 66 should have benefits for investors in both companies.
As I've talked about here and in the media all year, I have high hopes for the coming split-up of Conoco ($COP) from Phillips 66. I had clients in Marathon Oil a couple of years ago when they did the same thing (separating the downstream from the upstream assets) and the stock has worked out magnificently since. There is also a great deal of positive research on spin-offs; a portfolio consisting of parent and child from every split in the S&P from 2007 through year-end 2011 has handily beaten the S&P.
We're long Conoco across almost all client accounts in varying amounts, it is one of our few high conviction longs.
So with that in mind, you'll understand my delight at seeing my investment thesis laid out by one of my favorite financial writers in the game for this week's Barron's. Here's Michael Santoli with his take on the coming spin-off/distribution:
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