Conoco launches plan to distance itself from shale, win back shareholders

ConocoPhillips announced a 10-year plan to buy back $30 billion of shares, equivalent to about half of its current market capitalization. ConocoPhillips reported third-quarter 2019 earnings of $3.1 billion, or $2.74 per share. Company announced it has entered into an agreement to sell the subsidiaries that hold its Australia-West assets. Company announced an increase in its quarterly dividend of 38 percent, to 42 cents per share. The oil producer attempts to distance itself from the troubled U.S. shale industry. Company completed its previously announced transaction to sell two ConocoPhillips United Kingdom (U.K.) subsidiaries.

Company announced it has completed the previously announced transaction to sell its 30 percent interest in the Greater Sunrise Fields. The company also said it will pay dividends of about $20 billion over the period and limit average capital expenditure to about 10% above current levels. Company announced a $1 million contribution to the University of Houston’s College of Natural Sciences and Mathematics (NSM). The arbitration tribunal constituted under the auspices of the International Centre. CEO Ryan Lance told investors and analysts at a presentation in Houston on Tuesday that the long-term plan sets the company.

Company announced the winners of its 2018 Supplier Recognition Award program. Apart from its peers amid a fight to regain the interest of shareholders in U.S. oil and gas, one of the worst-performing sectors this year. It compared with third-quarter 2018 earnings of $1.9 billion, or $1.59 per share. It represents an annualized increase in the dividend of approximately $500 million. The donation marks the first of several planned contributions by ConocoPhillips to support data science curriculum at multiple universities. The ICSID tribunal ruled in 2013 that the expropriation of ConocoPhillips’ substantial investments in the Hamaca.

In addition, the company will also receive a payment of $75 million upon final investment decision of the Barossa development project. The dividend is payable Dec. 2, 2019, to stockholders of record at the close of business on Oct. 17, 2019. There’s a struggle for relevance unless the industry can create value on sustained basis. The contribution to the University of Houston will fund new faculty positions in the computer science. The current ruling addresses compensation, and the timing and manner of collection remain to be determined. The 10 recipient companies were honored for exhibiting exceptional leadership in observance of SPIRIT Values.

It forced into a painful dividend cut during the 2014-2016 oil price crash. The government of Timor-Leste for $350 million plus customary adjustments. The oil and natural gas industry is evolving in ways that increasingly require ConocoPhillips employees to utilize leading-edge data analytic skills. Company welcome the ICSID tribunal’s decision, which upholds the principle that governments cannot unlawfully expropriate private investments. The third-largest U.S. oil producer has regrouped under Lance and has built a reputation of being one of the more dependable producers. Awards were given in two areas: focus on execution and doing business better.

It compared with third-quarter 2018 adjusted earnings of $1.6 billion. The subsidiaries hold the company’s 37.5 percent interest in the Barossa project and Caldita Field. The subsidiaries indirectly held the company’s exploration and production assets in the U.K. Company pleased to complete this transaction with the government of Timor-Leste. The University of Houston is an important source of talent for us, so we’re pleased to provide a gift that will enable the university. In April 2018, in a separate and independent legal action, an international arbitration tribunal constituted under the rules.

Lance says during the presentation, “The industry faces a flight of sponsorship by investors”.

It differentiating itself from other shale operators that have disappointed on production and earnings. ConocoPhillips business units around the world generated nominations internally, with winners chosen by a cross-functional committee. ConocoPhillips will retain its 37.5 percent interest in the Australia Pacific LNG project. It approximately $1.8 billion in asset retirement obligations. ConocoPhillips recognizes the importance of the Greater Sunrise Fields to the nation of Timor-Leste. Energy stocks have shrunk to less than 5% of the S&P 500 Index. The Sunrise and Troubadour gas and condensate fields, collectively known as the Greater Sunrise Fields, are located in the Timor Sea.

It less than half the level a decade ago, after shale producers burned through nearly $200 billion of cash. The ICC tribunal’s ruling arose out of PDVSA’s failure to uphold its contractual commitments in response to Venezuela’s unlawful expropriation. With investors focused on returns rather than output expansion, Conoco is busy morphing into a low-growth but high cash-generating company. The company also announced that it expects to repurchase $3 billion of its shares in 2020. Demand for expertise in data science is growing at a rapid pace: from students who want to learn the field. ConocoPhillips announced that it entered into a settlement agreement with PDVSA.

It built to withstand low crude prices and peak oil demand, which the International Energy Agency says could happen around 2030. Cash provided by operating activities was $2.3 billion. Excluding working capital, cash from operations (CFO) of $2.6 billion exceeded capital expenditures. Conoco was 1.1% higher at $57.31 at 11:44 a.m. in New York trading. The sale transaction covers ConocoPhillips’ interest in Production Sharing Contracts 03-19 and 03-20 and Retention Leases NT/RL2 and NT/RL4. Data science is important in many fields, from business to engineering to health care. ConocoPhillips also has a pending contractual ICC arbitration against PDVSA related to the Corocoro project.

The stock has dropped 8.1% this year, while the Standard and Poor’s 500 Energy Index has advanced 1.6%. ConocoPhillips is the world’s largest independent E&P company based on production and proved reserves. Headquartered in Houston. Investors have delivered stinging rebukes to energy companies this year for paying substantial premiums for acquisitions. It increase in our ordinary dividend reflects the significant transformation. In the early 1990s, Venezuela created a new fiscal framework to induce foreign investment in its heavy oil projects in the Orinoco Belt. Over the last several years ConocoPhillips has reduced its cost of supply while continuing to achieve outstanding operational results.

Occidental Petroleum Corp.’s $37 billion deal for Anadarko Petroleum Corp. It proceeds from this transaction will be used for general corporate purposes. Company pleased that Chrysaor recognizes the value of our U.K. exploration and production assets. COO Matt Fox admitted that the “elephant in the room” is the possibility Conoco will use its cash hoard for a major deal. Company extremely proud of work in Australia-West over the last 20 years. Obviously it can’t and shouldn’t rule that out, but can rule out doing a bad acquisition driven by the wrong reasons. Workforce there should be proud of their accomplishments. ConocoPhillips helped Venezuela develop the Petrozuata, Hamaca.

It is not going to do something that undermines our financial framework. Company pleased that Santos recognizes the value of the existing business as well as the opportunity to develop Barossa. Conoco also has conventional production in Alaska, Europe and Asia, while also operating in shale basins. The success would not be possible without the leadership and commitment to excellence. Though Conoco aims to avoid the pitfalls of rival shale producers, the sector will provide much of the company’s growth. It providing industry-leading technology and substantial long-term investments to the government of Venezuela. It look forward to maintaining our commercial trading business.

The account for about 60% of its capital expenditure over the next decade. ConocoPhillips had operations and activities in 16 countries, $70 billion of total assets. The Venezuelan government expropriated ConocoPhillips’ investments in their entirety without compensation. Its shale production from the Permian basin, Eagle Ford, Bakken and Montney in Canada will more than double to 900,000 bpd by 2029. This program is one way that celebrate the efforts of our suppliers. Conoco said it will stick with about 20 drill rigs and won’t try to chase higher production in times of high crude prices. It increased production from the Lower 48 Big 3 unconventionals by 21 percent. It’s tends to destroy shareholder capital.

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