ConocoPhillips (NYSE:COP) said that it will raise its quarterly dividend and sell some assets over the next two years.
The oil company said its board raised the quarterly dividend 6% to 50 cents a share. The dividend is payable Dec. 1 to stockholders of record as of Oct. 30. ConocoPhillips (NYSE:COP) also said it plans to sell off about $10 billion in assets over the next two years to improve its capital position.
The company said it expects to spend $11 billion on capital expeditures in 2010, down from $12.5 billion in 2009. Shares of ConocoPhillips rose 1.6% to $49.20 in recent trading.
The move represents a major turnabout for an oil and gas company that embarked on gigantic acquisitions and racked up debt during boom times, which came to an abrupt end as the global recession ensued. ConocoPhillips, the third-largest U.S. energy company by market value after ExxonMobil Corp. (XOM) and Chevron Corp. (CVX), has fared worse than its peers following last year’s collapse of petroleum and natural gas prices.
ConocoPhillips upped its exposure to both natural gas and refining on the assumption that prices for raw hydrocarbons and useful products such as gasoline and diesel would remain relatively high. When it became apparent that its early estimates were overly optimistic, ConocoPhillips earlier this year cut thousands of jobs and slashed capital expenditures – the only major integrated U.S. oil company to do so. The changes come amid speculation among analysts that ConocoPhillips is seeking to quell discontent among investors, Dow Jones reported.
