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ConocoPhillips (COP) - Get ConocoPhillips Report  said Monday it would boost its quarterly dividend 38% to 42 cents a share, and planned to buy back $3 billion of its stock in 2020.

The oil producer said it was committed to returning to investors more than 30% of cash from operations annually via dividends and buybacks.

The dividend is payable on Dec. 2, to shareholders of record Oct. 17.

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"This increase in our ordinary dividend reflects the significant transformation our company has undergone over the past few years," said Ryan Lance, chairman and CEO. "Since announcing our returns-focused value proposition in 2016, we have improved our underlying performance drivers and lowered our sustaining price for the business.

"Given these enhancements, we are confident we can fund a higher, growing cash dividend, while maintaining a substantial, consistent buyback program. Since 2016 we have returned about 45% of cash from operations to shareholders and we remain committed to delivering peer-leading return of capital annually," Lance said.

The stock rose 0.95% to $54.04 in trading Monday, near the low end of its 52-week range of $50.13 to $79.96. Based on 20 analysts surveyed by FactSet, the stock has a target price of $73.89 and consensus buy rating.