ConocoPhillips (NYSE: COP) today announced a 50 percent increase
in its planned 2018 share repurchase program, from $2 billion to $3
billion. The company expects to fully fund this year’s $3 billion
program, as well as its dividend and capital expenditures, with
cash from operations.
The 2018 expansion to $3 billion, combined with the $3 billion
of shares repurchased during 2016 and 2017, will fully utilize the
board of directors’ existing share repurchase authorization of $6
billion.
As a result, the ConocoPhillips board has authorized an
additional $9 billion for share repurchases, bringing the total
program authorization to $15 billion.
The company initiated its current share repurchase program in
late 2016. Including shares already repurchased under this program,
as well as future repurchases based on the current share price, the
$15 billion authorization represents approximately 20 percent of
the total shares outstanding as of Sept. 30, 2016.
The company also announced that it paid down $2.1 billion of
balance sheet debt during the second quarter, thereby achieving its
stated debt target of $15 billion significantly earlier than the
original target date of year-end 2019.
“We believe the expansion and extension of our repurchase
program should be viewed as a clear signal that we are committed to
delivering on our strategic priorities and that we still see upside
potential for our shares,” said Ryan Lance, chairman and chief
executive officer. “We have now achieved our debt target well ahead
of plan, so we intend to use strong cash flows from the business to
increase our return of capital to shareholders, while maintaining
capital discipline.”
Lance continued, “Since late 2016, we have built upon our unique
portfolio advantage and positioned the company for strong
performance through price cycles. We’ve lowered our sustaining
price and the cost of supply of our resource base, deleveraged the
balance sheet, focused on free cash flow generation, and maintained
consistency in our approach to distributions and capital spending.
Today’s announcement is another proof point that we remain
committed to delivering per-share production and cash flow
expansion with compelling through-cycle returns to
shareholders.”
The board of directors retains discretion for implementing the
repurchase authorization. The level or pace of activity may be
affected by various factors, including future earnings, financial
condition, capital requirements, levels of indebtedness, credit
ratings and other considerations the board of directors deems
relevant.
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About ConocoPhillips
ConocoPhillips is the world’s largest independent E&P
company based on production and proved reserves. Headquartered in
Houston, Texas, ConocoPhillips had operations and activities in 17
countries, $71 billion of total assets, and approximately 11,200
employees as of March 31, 2018. Production excluding Libya averaged
1,224 MBOED for the three months ended March 31, 2018, and proved
reserves were 5.0 billion BOE as of Dec. 31, 2017. For more
information, go to www.conocophillips.com.
CAUTIONARY STATEMENT FOR THE PURPOSES
OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements.
Forward-looking statements relate to future events and anticipated
results of operations, business strategies, and other aspects of
our operations or operating results. In many cases you can identify
forward-looking statements by terminology such as "anticipate,"
"estimate," "believe," "continue," "could," "intend," "may,"
"plan," "potential," "predict," "should," "will," "expect,"
"objective," "projection," "forecast," "goal," "guidance,"
"outlook," "effort," "target" and other similar words. However, the
absence of these words does not mean that the statements are not
forward-looking. Where, in any forward-looking statement, the
company expresses an expectation or belief as to future results,
such expectation or belief is expressed in good faith and believed
to have a reasonable basis. However, there can be no assurance that
such expectation or belief will result or be achieved. The actual
results of operations can and will be affected by a variety of
risks and other matters including, but not limited to changes in
commodity prices; changes in expected levels of oil and gas
reserves or production; operating hazards, drilling risks,
unsuccessful exploratory activities; difficulties in developing new
products and manufacturing processes; unexpected cost increases or
technical difficulties in constructing, maintaining, or modifying
company facilities; international monetary conditions and exchange
rate fluctuations; our ability to liquidate the common stock issued
to us by Cenovus Energy Inc at prices we deem acceptable, or at
all; our ability to complete the sale of our announced dispositions
on the timeline currently anticipated, if at all; the possibility
that regulatory approvals for our announced dispositions will not
be received on a timely basis, if at all, or that such approvals
may require modification to the terms of our announced dispositions
or our remaining business; business disruptions during or following
our announced dispositions, including the diversion of management
time and attention; the ability to deploy net proceeds from our
announced dispositions in the manner and timeframe we currently
anticipate, if at all; potential liability for remedial actions
under existing or future environmental regulations; potential
liability resulting from pending or future litigation; limited
access to capital or significantly higher cost of capital related
to illiquidity or uncertainty in the domestic or international
financial markets; and general domestic and international economic
and political conditions; as well as changes in tax, environmental
and other laws applicable to our business. Other factors that could
cause actual results to differ materially from those described in
the forward-looking statements include other economic, business,
competitive and/or regulatory factors affecting our business
generally as set forth in our filings with the Securities and
Exchange Commission (SEC). Unless legally required, ConocoPhillips
undertakes no obligation to update publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Cautionary Note to U.S. Investors – The SEC permits oil
and gas companies, in their filings with the SEC, to disclose only
proved, probable and possible reserves. We use the term "resource"
in this news release that the SEC’s guidelines prohibit us from
including in filings with the SEC. U.S. investors are urged to
consider closely the oil and gas disclosures in our Form 10-K and
other reports and filings with the SEC. Copies are available from
the SEC and from the ConocoPhillips website.
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version on businesswire.com: https://www.businesswire.com/news/home/20180712005198/en/
ConocoPhillipsDaren Beaudo, 281-293-2073
(media)daren.beaudo@conocophillips.comorAndy O’Brien, 281-293-5000
(investors)andy.m.obrien@conocophillips.com
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