The company has 12 refineries in the United States, 6 in Europe and 1 in Asia.

COP is also a big natural gas processor, with 63 natural gas processing plants and 58,000 miles of gathering lines.

In the Chemicals and Plastics segment, ConocoPhillips has a 50% interest in Chevron Phillips Chemical Company which operates 6 research and technology centers and has 36 production facilities in 7 countries.

ConocoPhillips Beats Wall Street Estimates for the Second Quarter

On July 23, ConocoPhillips reported second quarter estimates, and despite analysts raising estimates throughout the quarter, still beat consensus estimates by 3 cents per share. Net income was $5,439 million, or $3.50 a share, compared to $301 million, or 18 cents a share, in the second quarter 2007. Analysts expected $3.47 per share.

2007 was impacted by an impairment associated with the Venezuela operations worth $4,813 million. Adjusted for the Venezuela impairment, second-quarter 2007's earnings were $4,813 million, or $2.90 per share.

Revenues jumped 51% to $71.4 billion compared to $47.4 billion a year ago.

As expected given high crude and natural gas prices, the Exploration and Production segment saw net income soar to $3,999 million from $2,108 million in the second quarter of 2007, adjusted for the Venezuela impairment.

Refining and marketing saw a decrease in net income due to the tight refining margins. Net income was $664 million in the second quarter down from $2,358 million in the second quarter of 2007. Net income was higher than the first quarter, however, due to higher worldwide realized refining margins and improved refining operations in the Gulf Coast and the United Kingdom compared to the first quarter.

COP Continues With Share Repurchase Program

The company anticipates repurchasing an additional $2 to $3 billion shares in the third quarter as part of the previously announced $10 billion share repurchase plan for 2008.

ConocoPhillips is a Zacks #1 Rank (Strong Buy). It has beat estimates 3 out of the last 4 quarters on average of 4.09%. Analysts estimate year-over-year earnings growth of 35.18%. COP has a forward P/E of only 5.74.

(The author of this article owns shares of ConocoPhillips.)

PETS Faces Tough Competition

PetMed Express (PETS) reported first quarter sales that were $3 million ahead of our forecast, and its earnings per share were $0.02 ahead of our estimate. The EPS upside was due to the sales upside, expense controls, and a lower share count. The company reduced its total operating expense ratio by 70 basis points year-over-year. Going forward, we think the company should be able to maintain a total operating expense ratio of 24%.