Conoco (NYSE:COP), Exxon (NYSE:XOM) Price Targets Raised by The Benchmark Company

Price targets at ConocoPhillips (NYSE:COP) and Exxon Mobil (NYSE:XOM) were increased by The Benchmark Company, citing upward revisions on their normalized earnings.

The price target on Conoco was raised from $43 a share to $48 a share, while Exxon was bumped up from $48 a share to $52 a share.

Benchmark said the normalized earnings of Conoco were partially offset by the dilution related to the divestiture of its Lukoil stake and associated share-buyback program.

Concerning their "Sell" rating on Conoco, the company said, "We reaffirm our Sell rating based upon our continuing belief that the modestly discounted normalized multiple valuation currently in place is insufficient given the significant weakness in the company's portfolio, management-related concerns, and the comparatively high earnings and cash flow sensitivity to the anticipated weakness in the refining sector."

They also reiterated a "Sell" rating on Exxon Mobil, saying, "We reaffirm our Sell rating reflecting our unchanged belief that the sizable premium normalized earnings multiple currently in place is excessive given a sector average, at best, upstream growth rate and financial management/strategy oriented concerns."

ConocoPhillips (NYSE:COP), Lukoil (MM:LKOH) Deal Not a Certainty

ConocoPhillips (NYSE:COP) was sure they had a deal to sell their entire stake in Lukoil (MM:LKOH) back to the company, which they're 40 percent on the way to doing. Comments by Lukoil CEO Vagit Alekperov have raised some doubt as to the rest of the stake, saying the shares should be sold on the open market instead of Lukoil buying them back.

Russian business daily Vedomosti cited Alekperov, "We do not have any intentions to transform LUKOIL into a private company, it should in the future stay public."

According to Alekperov, there hasn't been a decision by the board of directors or management on whether or not they'll exercise the option to acquire the other 60 percent of the stake of Conoco, where the option is scheduled to expire on September 26.

It's hard to tell if this is a serious comment by Alekperov, or one that carries weight, as he made said similar comments before the first phase of acquiring Conoco's stake.

The value of the remaining stake of Conoco is about $5 billion.

Lukoil Receives Financing to Acquire Conoco (NYSE:COP) Shares in Company

The recent announcement that Conoco (NYSE:COP) would be selling 7.6 percent stake in Lukoil back to the company is a step closer to reality, as Lukoil secured $1.5 billion in financing from six banks.

Lukoil agreed with ConocoPhillips to buyback the 7.6 percent stake they held for $3.4 billion, and included in the terms of the deal are a 60-day option to acquire more stock in the company held by Conoco.

Unnamed people close to the deal said the banks involved in the financing are Citigroup Inc. (NYSE:C), Bank of Tokyo-Mitsubishi UFJ Ltd., ING Groep NV, Natixis, Royal Bank of Scotland Group Plc and WestLB AG.

The known terms of the loan are its a one-year deal