Top 10 Forever Stocks | a series brought to you by Wyatt Investment Research ----------------------------------------­----------------------------------------­--------- Forever Stock No. 10 is ConocoPhillips (NYSE: COP). For this report, I researched a range of industries to bring you stocks that should hold up regardless of market conditions. To keep your portfolio diversified, I chose companies across several unrelated industries, including energy, healthcare, financials, technology, industrial goods and consumer staples. What’s more, several pay healthy dividends, a must in today’s low-interest-rate environment. These stocks are built to last, meaning you should hold onto them for the long haul. I’m sure you’ll be pleased with their performance for many years to come. ----------------------------------------­----------------------------------------­---------

1. F O R E V E R S T O C K N O . 1 0
ConocoPhillips
(NYSE: COP)
Don’t Let High Oil Prices Get You Down

2. The age of cheap oil, which fueled economic growth and
prosperity for the last century, has come to an end. Don’t
blame speculators or big oil companies for the $100-plus
prices. The hike is a result of diminishing supplies of cheap oil
being replaced with oil in harder-to-reach places that cost
more to produce and bring to market.
F O R E V E R S T O C K N O . 1 0
THE AGE OF CHEAP OIL IS OVER

3. Every year, four million barrels
of daily production are lost as a
result of wells that run out of
oil. They’ve been pumped dry
after decades of delivering
crude from the ground. This
means that roughly 4-5% of
annual production disappears
every year.
F O R E V E R S T O C K N O . 1 0
4 MILLION BARRELS OF OIL LOST

4. oil companies need to discover another 20
million barrels of daily production just to keep
pace with current demand requirements. And
that assumes no increased demand for oil,
which is an unrealistic expectation.
F O R E V E R S T O C K N O . 1 0
During the next five years,

5. I say that because in the past 30 years, oil
consumption fell only twice. Those came during
the recessionary periods of 1983 and 2009.
F O R E V E R S T O C K N O . 1 0

6. Over the next 15 years, China’s oil consumption is projected to
grow 7% annually or 15 million more barrels of oil a day than
it does today. This will make China the biggest consumer of oil
in the world, taking the lead ahead of the U.S.
Americans are no slouches either. Despite President Obama’s
focus on alternative energy, demand for oil by the U.S. grew
2% in 2013, the first time since 1999 and the most of any
country—including China—according to the International
Energy Agency (EAI).
F O R E V E R S T O C K N O . 1 0
OIL CONSUMPTION ON THE RISE

7. So it’s clear that the thirst for energy and oil is
going to grow in the coming decades. While
renewable sources of energy are an exciting
opportunity for the long term, they’re unlikely to
have a material impact on the growing demand
expected in coming decades.
F O R E V E R S T O C K N O . 1 0

8. For investors, the solution is to add exposure to energy. The
reason to be bullish on oil today is because we have likely
reached the point of peak oil production, and will therefore
see higher oil prices for the long term. This will benefit
companies that are in the business of oil and gas production,
exploration and services.
F O R E V E R S T O C K N O . 1 0
ADD EXPOSURE TO ENERGY

9. So what looks like the best long -term energy play?
F O R E V E R S T O C K N O . 1 0

10. No doubt you know ConocoPhillips (NYSE:COP), one of
the largest oil companies in the world.
ConocoPhillips is a fully-integrated energy company with
operations spanning the globe. The company has wide-
ranging operations that begin with the exploration for oil
and include every step in the process - production,
refining, transportation and the ultimate sale of oil-based
products such as gasoline.
F O R E V E R S T O C K N O . 1 0

11. The company has around 18,000 employees in 29 countries.
Oil continues to be a large part of the business, with gas and
liquefied natural gas also playing a significant role.
ConocoPhillips has added 850,000 acres since 2011 in North
America. It is active in the major oil and natural gas finds
including the Bakken, North Barnett and the Eagle Ford in the
U.S; and in Muskwa, Montney, Canol Shale, and Duvernay in
Alberta and British Columbia, Canada.
F O R E V E R S T O C K N O . 1 0
AN EXPANSIVE GLOBAL PRESENCE

12. ConocoPhillips clearly benefits
from a rise in oil prices, as
seen in the fourth quarter and
full-year 2011 financial results
released in late January. Total
revenues for the year rose
26.5% to $251 billion, while
adjusted earnings doubled to
$12.4 billion.
While production fell slightly
during the final three months
of the year, this decline was
offset by higher crude oil
prices that improved margins
and boosted earnings.
F O R E V E R S T O C K N O . 1 0

13. Shares of ConocoPhillips represent a diversified investment on
the future rise in the price of oil. Higher prices will translate
into higher revenues and larger profit margins for the
company. At the current price of roughly $100 per barrel, the
company is operating with a 27% margin. Compared with its
largest competitors, ConocoPhillips shares appear attractively
valued.
The stock trades at 10.85 times forward earnings, compared
with 12.42 for ExxonMobil and 10.85 for the major integrated
oil and gas sector.
F O R E V E R S T O C K N O . 1 0
A DIVERSIFIED INVESTMENT

14. The company also pays shareholders a healthy cash dividend of
$2.76 per year, delivering a yield of 4.1% based on the current share
price of $66. This yield puts ConocoPhillips ahead of such
competitors as Apache (1.3%), Chevron (3.5%), and ExxonMobil
(2.6%). It’s also noteworthy that the company has increased the
dividend every year in the past 12 years.
Shares of ConocoPhillips have risen along with the price of oil. This
move has been similar for other oil and gas production and
exploration companies, whether they’re fully integrated majors or
juniors.
F O R E V E R S T O C K N O . 1 0
SHAREHOLDER FRIENDLY

15. With several mega-cap integrated oil companies to choose from, we prefer
one of the smaller ones – ConocoPhillips – based on its financial strength,
reserve capacity and healthy dividend.
F O R E V E R S T O C K N O . 1 0
Exposure to energy is a must for any long-term portfolio.