ConocoPhillips Forecasts Rise in 2022 Shareholder Returns Totaling $7 Billion

Truist Securities analyst Neal Dingmann called the news “quite positive,” saying the new return structure and tepid production growth are what ConocoPhillips investors have been calling for.

Arunima Kumar, Reuters

Oil producer ConocoPhillips Co. said on Dec. 6 it expects to return 16% more capital to shareholders next year, and added a new variable return of cash to its plans, underscoring the energy industry’s focus on shareholder returns over spending.

Oil and gas companies have either raised their dividends or announced share buybacks, even as crude price are up about 38% this year, as they keep their pledges to hold output flat, a marked departure from previous boom cycles.

ConocoPhillips also forecast average production of about 1.8 million boe/d in 2022, a low-single-digit percentage growth from 2021.

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