UBS Maintains a 'Neutral' on ConocoPhillips (COP); Surprise Spin-Off of R&M Segment

UBS maintains a 'Neutral' on ConocoPhillips (NYSE: COP), PT lowered from $81 to $80.

UBS analyst says, "COP announced plans for a tax-free spin-off of its R&M business to existing shareholders which is expected to be completed in the first half of 2012. The spin comes as a surprise given prior statements to only pursue downstream asset sales. Unlike Marathon (NYSE: MRO) / Marathon Petroleum (NYSE: MPC), which unlocked the R&M and E&P discount valuations, we believe the COP spin is unlikely to unlock meaningful incremental value as COP was already trading at a half-turn premium on ’11-’12 EV/DACF to peers, and its downstream assets are less attractive than MPC."

For more ratings news on ConocoPhillips click here and for the rating history of ConocoPhillips click here.

Shares of ConocoPhillips closed at $75.61 yesterday.

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