ConocoPhillips Preliminary 2022 Capital Expenditures Budget
ConocoPhillips (NYSE: COP) announced several updates that highlight the company’s differentiated value proposition. This announcement follows the recent closing of the company’s acquisition of Shell’s Permian Basin properties on Dec. 1 for net cash of $8.6 billion.
The announcement reflects the addition of Shell’s Permian Basin properties, including the previously announced expected 2022 capital expenditures and production associated with that transaction. Highlights include:
- Planned companywide 2022 capital expenditures of ~$7.2 billion
- The planned capital includes ~$0.2 billion 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;
- Expected 2022 annual average production of ~1.8 MMBOED, representing low single-digit percentage underlying growth versus pro forma 2021;
- Expected 2022 return of capital to shareholders of ~$7 billion, representing a ~16% increase versus 2021. The company is initiating a three-tier capital return program that will consist of a compelling ordinary dividend tier, a share repurchase tier, and a newly authorized quarterly variable return of cash (VROC) tier. The first VROC of $0.20 per share will be paid on Jan. 14, 2022, to shareholders of record as of Jan. 3, 2022.
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