IB Net Payout Yields Model

Did Iran Just Destroy ConocoPhillips' Cash Flow Plan?


  • The news that Iran might dump oil on the market is bearish for the price of the commodity.
  • ConocoPhillips has a plan that requires much higher oil prices to cover the dividend with cash flow.
  • The stock appears propped up by a dividend that isn't supported by cash flows.
   Due to a confluence of issues, oil prices plunged on July 6. The massive 7.7% drop in WTI left the benchmark at roughly $52.50 per bbl before a further drop mid-day on Tuesday. While Greece and China are short-term concerns, the biggest issue to the oil markets long term is Iran.

 Read the full article on Seeking Alpha.

 Disclosure: No positions mentioned. Please read the disclaimer page for more details.


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