Purchasing a Single Share of ConocoPhillips at Its Initial Public Offering (IPO) Yields This Current Share Count
Boldly Going Back: The Journey of ConocoPhillips Since Its Historic IPO
Ever wonder what would have happened if you'd invested in ConocoPhillips (COP 0.55%) back in 1998, the year it made history as the largest initial public offering (IPO) at close to $4.4 billion? Let's take a trip down memory lane and see how your $23 investment in a single share would have fared thirty years later.
ConocoPhillips, a titan in the oil and gas industry, has weathered numerous changes since its inception. One of the most significant transformations came in 2001 when Conoco merged with Phillips Petroleum, forming the world's sixth-largest oil company at the time. The merger was a game-changer, leading to a surge in the company's share price.
In 2005, ConocoPhillips took another strategic move by enacting a 2-for-1 stock split. This split effectively doubled the number of shares held by investors while halving the share price. This happened because – as with all stock splits – investors now held twice as many shares as before.
However, this was not the only change the company underwent. In 2012, ConocoPhillips spun off its downstream business (including refining, chemicals, and midstream assets) and created Phillips 66 (PSX -0.13%). Shareholders of ConocoPhillips were gifted one share of Phillips 66 for every two shares they owned at the time. A shareholder investing $23 in ConocoPhillips in 1998 would now possess two shares of ConocoPhillips and one share of Phillips 66, which has yet to split its stock.
Now, let's calculate the current value and total dividend payments accumulated from that single, historic $23 investment.
Firstly, we'll consider the stock splits. ConocoPhillips has undergone six 2-for-1 splits since its IPO. After these splits, the adjusted share price for one share purchased at the IPO price of $1 would now be $64. With the current stock price of ConocoPhillips (as of our last update, nearly $60 per share), the current value of that investing dollar would sum up to approximately $3,840.
Secondly, we'll examine the dividend payments. ConocoPhillips has a rich history of consistently paying dividends. To calculate the exact dividend payments from 1998 till now, you'd need accurate historical data. But, let's bear in mind that this sum would be substantial.
In conclusion, even a modest investment in ConocoPhillips' IPO in 1998 has the potential to grow significantly over the long term. As our calculations show, that single dollar has bloomed into a potential $3,840 investment. And don't forget the dividend payments, which would further increase the investment's value.
If you had decided to invest in money from ConocoPhillips during its historic IPO in 1998, your $23 investment in a single share would have significantly grown over the years due to both share price appreciation and dividend payments. With the company's history of beneficial stock splits and consistent dividend payouts, the value of that initial investment could have exceeded $3,840, as calculated based on the current share price.
Considering the transformations ConocoPhillips has undergone in its finance and investment strategies, such as the 2001 merger with Phillips Petroleum and the 2012 spin-off of its downstream business to create Phillips 66, smart investors who invested money in the company have seen their investments grow over time.
%20Yields%20This%20Current%20Share%20Count){kind=link}