ConocoPhillips Squeeze: Trinidad Court Reportedly OKs $1.3B Claim Against Venezuela
Portfolio Pulse from Lekha Gupta
ConocoPhillips (NYSE:COP) has been granted the right by a Trinidad and Tobago court to enforce a $1.33 billion claim against Venezuela for past expropriations. This decision allows ConocoPhillips to seize compensation from joint gas projects with Trinidad. The company has been pursuing enforcement in various courts after winning arbitration awards against Venezuela and its state oil company PDVSA. PDVSA had paid around $700 million but stopped payments in late 2019. ConocoPhillips is also involved in a Delaware case to auction shares in Citgo Petroleum’s parent firm to pay creditors. Additionally, BP p.l.c. (NYSE:BP) and Trinidad’s NGC received a two-year license from the U.S. Treasury to negotiate and develop gas fields with Venezuela.
May 31, 2024 | 10:10 am
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POSITIVE IMPACT
BP and Trinidad’s NGC received a two-year license from the U.S. Treasury to negotiate and develop gas fields with Venezuela. This development could enhance BP's future revenue streams.
The license to develop gas fields with Venezuela could lead to new revenue opportunities for BP, positively impacting its financial outlook.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
ConocoPhillips has been granted the right to enforce a $1.33 billion claim against Venezuela, potentially allowing the company to seize compensation from joint gas projects with Trinidad. This could positively impact COP's financials and stock price.
The court ruling allows ConocoPhillips to enforce a significant financial claim, which could improve its financial position and positively impact its stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to ConocoPhillips via the IShares U.S. Oil & Gas Exploration & Production ETF (IEO). The positive developments for ConocoPhillips could benefit IEO's performance.
As ConocoPhillips is a significant holding in IEO, positive developments for COP could enhance the ETF's performance.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 30
POSITIVE IMPACT
Investors can gain exposure to ConocoPhillips via the Westwood Salient Enhanced Energy Income ETF (WEEI). Positive news for ConocoPhillips could benefit WEEI's performance.
As ConocoPhillips is a significant holding in WEEI, positive developments for COP could enhance the ETF's performance.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 30