Tweedy Browne’s Top Stocks (Part II): Devon Energy Corp (DVN), EOG Resources Inc (EOG)

The Largest Independent Oil & Gas Company

The fourth largest position was ConocoPhillips. It had nearly 3 million shares in the company, with a total market value of more than $173.2 million, accounting for 5.1% of its total portfolio. ConocoPhillips is considered the largest global independent exploration and production company, with worldwide operations. As of December 2012, it had 8.6 billion BOE in proved reserves. ConocoPhillips also had a quite conservative balance sheet as well. It had nearly $48 billion in total stockholders’ equity, more than $27 billion in cash and investments, and nearly $21 billion in debt. With the current trading price of $58.20 per share, ConocoPhillips is worth more than $71 billion on the market. It is valued quite cheaply, at only 4.24 times EV/EBITDA. ConocoPhillips is paying to investors a decent dividend yield of 4.6%.

Foolish Bottom Line

Indeed, both Devon and ConocoPhillips are worth holding for the long run as they are quite profitable, valued quite cheaply on the market, and employed reasonable amount of leverage. In addition, both of them might fit well with the portfolios of income investors, as both are paying sustainable and increasing dividends over time.

The article Tweedy Browne’s Top Stocks (Part II) originally appeared on Fool.com and is written by Anh HOANG.

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