Wednesday, November 25, 2015
Sold ConocoPhillips, Phillips66. Bought Exxon Mobil
Conoco got caught with its pants down, and wasn't in a very strong position to weather much lower oil. In order to keep its dividend going, Conoco is now looking to sell its deepwater exploration business, which I don't think is a very good move. In this price environment, those assets are going to go at fire sale prices.
Exxon (NYSE: XOM), for its part, is buying assets down here, and that's the type of company I want to be with.
My sale of Phillips66 (NYSE: PSX) was purely strategic. I don't want to own two refiners. Also, selling Phillips66 offsets most of the yield difference between Conoco and Exxon right now. Selling both ConocoPhillips and Phillips66 and using all the proceeds for Exxon, I get a more-or-less even dividend yield, but one that is much more secure in this environment.