ConocoPhillips

Headquartered in Houston, TX, ConocoPhillips is primarily involved in the exploration and production of oil and natural gas. Considering proved reserves and production, the company is the largest explorer and producer in the world. The company, founded in 1875, has strong presence across conventional and unconventional plays in 16 countries. ConocoPhillips’ low risk and cost-effective operations spread across North America, Asia, Australia and Europe. The upstream energy player also has foothold in Canada’s oil sand resources and has exposure to developments related to liquefied natural gas (LNG).

The company ended 2020 with proved reserves of around 4.5 billion barrels of oil equivalent (BOE) and a reserve replacement ratio of 86%. Through 2020, the upstream energy player produced 1,127 thousand BOE per day, comprising more than 50.4% oil.

ConocoPhillips is strongly dedicated to returning cash to shareholders through dividend payments and share buybacks. In 2020, the company paid dividend of $1.8 billion and repurchased $900 million worth of shares. The company has approval from the board of directors to buy back a total of $25 billion of common stock. On top of that, ConocoPhillips has achieved a strong balance sheet by lowering debt burden, months ahead of plan.

As coronavirus-induced lockdowns are being withdrawn from major economies, ConocoPhillips has announced a capital budget for 2021 of $5.5 billion, higher than the 2020 level of around $4.7 billion. The total amount incorporates $5.1 billion that will be used to sustain the current production level and $400 million for growth project investments. Markedly, it resumed share repurchase program of $1.5 billion per annum, following a several-month hiatus. It can use the cash available on the balance sheet to fund the stock buybacks. Earlier, it slowed down the pace of the 2020 stock buy-back program due to market uncertainties.