I purchased 40 shares of COP.WI @ $55.66/share this morning.
As many of you know, ConocoPhillips plans to separate their refining business from their upstream oil exploration and production business at the end of the month. Phillips 66 (currently priced as PSX.WI) will become a separate publicly traded refining business with ticker PSX. For every 2 shares of COP held, you will receive 1 share of PSX. COP also plans to payout 20-25% of their Operating Cash Flow (OCF) as a dividend which I believe would keep their existing dividend of 2.64, giving it a YOC of about 4.7% at today’s price. There’s a good article here on Seeking Alpha.
I hold 30 shares of COP today so I will receive 15 shares of PSX. My plans are to sell the PSX shares which will be yielding just a little over 2%. I will keep the new COP along with the 40 shares I purchased today for a total of 70 shares.
Investors have 3 options for playing COP right now. You can buy COP pre-split with the normal ticker, you can buy shares of the new COP (COP.WI) or you can buy shares of the new Phillips 66 (PSX.WI).