ConocoPhilips: Time to Embrace Natural Gas Transportation [View article]
Long_on_oil
I agree with you on COP vs BP but for a totally different reason.
COP is bathing in debt, $52 billion dollars debt on a market cap of $75 billion. And its EPS is negative $16.38 share and so it is paying shareholders dividends with borrowed money, not earnings. This is the same problem with CHK.
BP has high debt of $65 billion, but it is small compared to its market of $175 billion. Its EPS is a positive $3.76, so at least its dividends are coming from actual earnings.
After being burnt by many times by stories of potential growth by companies like COP and CHK , now I always look at the balance sheet carefully before sinking a dime into any company.
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Long_on_oil
Oct 30 17:38 pm
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All Comments by longoil »ConocoPhilips: Time to Embrace Natural Gas Transportation [View article]
I agree with you on COP vs BP but for a totally different reason.
COP is bathing in debt, $52 billion dollars debt on a market cap of $75 billion. And its EPS is negative $16.38 share and so it is paying shareholders dividends with borrowed money, not earnings. This is the same problem with CHK.
BP has high debt of $65 billion, but it is small compared to its market of $175 billion. Its EPS is a positive $3.76, so at least its dividends are coming from actual earnings.
After being burnt by many times by stories of potential growth by companies like COP and CHK , now I always look at the balance sheet carefully before sinking a dime into any company.