Phillips 66 (PSX), ConocoPhillips (COP) And Many Questions. What Do You Think?

Both sets of companies reflect similar situations and numbers. Both Phillips 66 and Marathon Petroleum, the “downstream” companies, saw significant increases. Both ConocoPhillips (NYSE:COP) and Marathon Oil, the production and exploration companies, or “upstream,” experienced less income due to lowered oil prices. The success and increased activity of the downstream companies has contributed significantly to the lowered oil prices, and the downstream companies are benefiting from it.

If the respective companies had not all parted ways, all overall earnings would have been nearly flat or unimpressive. The $900 million profit at Phillips 66 would have made up for the $800 million decrease at ConocoPhillips (NYSE:COP). The Marathon Petroleum improvement of $129 million would have made up impressively for the $50 million decrease at Marathon Oil, but few people would have been impressed by a less than 12% net increase when most refining companies are reporting stellar income (like Chesapeake Energy). However, these side-by-side comparisons help shed a new light on why ExxonMobil’s numbers were so incredibly flat.

ConocoPhillips and Phillips 66 (NYSE:PSX), just like Marathon Oil and Marathon Petroleum before them, did the right thing by going their separate ways. The stand-alone companies give themselves, and investors, a better chance to succeed, without the weight of the other company pulling them down. The exploration and production side of the business has plenty of potential to rebound and make a comeback in the near future as the potential and abundance of shale gas and liquified natural gas continue to change the playing field.

All four companies continue to be a great long-term investment, each on their own, individual merits.

The article Phillips 66 and ConocoPhillips a Year Later originally appeared on Fool.com and is written by Erin McBride.

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