Diamonds and Dogs
ConocoPhillips (COP) is slimming down. The oil conglomerate agreed to sell a 50% stake in their oil sands business in Alberta, Canada to Cenovus for $10.6 billion in cash and 208 million shares of CVE valued at $2.7 billion. Conoco also recently announced the sale of its gas assets in the Western Canada Deep Basin. These divestitures will fetch more than $13.3 billion. Conoco will use the money to reduce its outstanding debt load of $27 billion down to $20 billion. The company will also double their buy back to $6 billion and accelerate the repurchase of its shares.
Lululemon athletica (LULU) looking a little sour. The athletic apparel maker is down over 20% after missing earnings estimates on in line estimates. Revenues rose 12.0% to $789 million. The company issued downside guidance for the current quarter and for the full year. The company is hoping for reaccelerates results in the second half of the year. Lululemon has received at least four downgrades.