Range Resources Corp. (RRC), Phillips 66 (PSX), ConocoPhillips (COP): 3 Oil and Gas Companies with Plans For Growing Returns

ConocoPhillips (NYSE:COP) has 35% working interest in Coronado and 30% in Shenandoah. It is one of the largest leaseholders in deep water in the Gulf of Mexico with two million net acres. These two oil discoveries provide viable exploration growth in the Gulf of Mexico, and the company plans to drill five to eight exploration wells in 2013 and 2014. The total crude oil production is expected to rise to 655 million barrels of oil equivalent per day in 2014, as compared to 618 million barrels in 2012.

On July 2, 2013, ConocoPhillips (NYSE:COP) received notification of the Kazakhstan Oil and Gas Ministry’s intent to purchase the company’s 8.5% interest in the North Caspian Sea production sharing agreement for $5 billion. The sale is part of the company’s plan to increase shareholder value by focusing on capital investment, delivering production growth and an increased dividend. The company plans to spend $16 billion per year since it has significant exploration and growth projects in the North Sea, Canadian oil sands, and Malaysia. It expects annual production growth of 3% to 5% through 2017.

Conclusion

All three of the oil and gas companies detailed above are trying to keep pace with industry growth through strategies including new discoveries, pipeline projects, and asset sales. Range Resources Corp. (NYSE:RRC)’s drilling in Marcellus shale and ethane transportation projects will drive revenue. Phillips 66 (NYSE:PSX)’s focus on its midstream segment with new pipeline projects will enhance earnings, and its share repurchase plans will enhance investor confidence. The sale of ConocoPhillips (NYSE:COP)’ assets in the North Caspian Sea and its oil discoveries in the Gulf of Mexico will drive revenue and production growth.

All three of these companies’ stocks are a “buy.”

Shweta Dubey has no position in any stocks mentioned. The Motley Fool recommends Range Resources.

The article 3 Oil and Gas Companies with Plans For Growing Returns originally appeared on Fool.com and is written by Shweta Dubey.

Shweta is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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