I came across a few research notes this morning and one in particular stood out to me as being quite symptomatic of the current market environment:

COP_Report

So once again analysts are gazing into their crystal ball and coming up with earnings estimates 12-18 months out. This is a fruitless task to say the least, but I guess somebody has to do it.

Moreover, the mega-cap oil names are not supposed to trade above 10x forward earnings due to the cyclical nature of their business and the fact that they are in a commodity business which is susceptible to myriad macro variables. To put a 12 multiple on COP's 2015 earnings after a "positive meeting" with company management is the height of sell-side analyst folly.

Make no mistake, this is "9th inning" style sell-side "research" which is characterized by reaching for any shred of positive spin that can be conjured up by the feckless analysts.

"After meeting with management last week, we came away with a higher level of confidence in the gas and oil exploration, development, and production company's ability to deliver incremental upside—not only in its U.S. onshore unconventional plays, but from the various exploration and appraisal options currently in its portfolio."

Has there ever been a management of a major/mid-major integrated oil company that wasn't optimistic on their future exploration opportunities? If so, please show it to me because I would love to short that stock...