COP ConocoPhillips

By Michael Dabaie

ConocoPhillips said it plans company-wide 2022 capital expenditures of about $7.2 billion and initiated a three-tier return of capital program.

The company issued an update following the closing of the its acquisition of Shell's Permian Basin properties on Dec. 1 for net cash of $8.6 billion.

The planned capital includes $200 million for Scope 1 and 2 emissions-reduction projects across the company's global operations and investments in several early-stage low carbon technology opportunities to address end-use emissions.

ConocoPhillips said it expects 2022 annual average production of about 1.8 million barrels of oil equivalent per day, representing low single-digit percentage underlying growth versus pro forma 2021.

The expected 2022 return of capital to shareholders of about $7 billion represents about a 16% increase versus 2021.

The company is initiating a three-tier capital return program that will consist of an ordinary dividend tier, a share repurchase tier, and a newly authorized quarterly variable return of cash tier. The first VROC of 20 cents a share will be paid on Jan. 14, 2022, the company said.

The company said it expects to provide additional 2022 guidance in conjunction with fourth-quarter 2021 earnings in early February.

Write to Michael Dabaie at michael.dabaie@wsj.com

(END) Dow Jones Newswires

December 06, 2021 08:44 ET (13:44 GMT)

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