Latest news with #RyanLance
Yahoo
28-05-2025
- Business
- Yahoo
After Sinking Nearly 30%, This Top Dividend Stock's Yield Is Approaching 4%. Time to Buy?
ConocoPhillips' dividend yield has risen as its stock price sank. The oil company has one of the lowest-cost operations in the oil patch. It has a leading free cash flow growth profile through 2029. 10 stocks we like better than ConocoPhillips › Shares of ConocoPhillips (NYSE: COP) have sunk almost 30% over the past year. The primary factor weighing on its stock has been falling oil prices. On a more positive note, the oil stock's slump has pushed its dividend yield up closer to 4%, well above the S&P 500's sub-1.5% yield. Here's a look at whether now's a good time to buy ConocoPhillips for dividend income. Oil prices have a major impact on the cash flows oil companies produce. However, some companies are in a better position to navigate oil price volatility than others. ConocoPhillips is one of those companies. On the first-quarter conference call, CEO Ryan Lance stated: ConocoPhillips is built for this [periods of market volatility], with clear competitive advantages. We have a deep, durable, and diverse portfolio. We have decades of inventory below our $40-per-barrel WTI [West Texas Intermediate] cost-to-supply threshold, both in the U.S. and internationally. He noted that in a world with "haves" and "have-nots," "we believe we are the clear leader of the 'haves,' and we have a disciplined capital allocation framework that is battle-tested through the cycles." The company's low-cost operations enable it to produce a lot of free cash flow. For example, it generated $5.5 billion in cash flow from operations and $2.1 billion in free cash flow in the first quarter. It also has a strong balance sheet, with $7.5 billion in cash at the end of the first quarter. The company's robust free cash flow and balance sheet strength enabled it to return $2.5 billion to investors during the first quarter, with $1 billion paid in dividends and a repurchase of $1.5 billion of its stock. ConocoPhillips tapped into its strong balance sheet to repurchase more shares in the quarter because it believes "our shares represent a very attractive investment at these prices," Lance said on the call. The company clearly believes its stock is a good buy right now. ConocoPhillips expects to produce even more free cash flow in the future. Lance stated on the call: "We are on the cusp of a compelling multiyear free cash flow growth trajectory, led by our high-quality longer-cycle investments in Alaska and LNG [liquefied natural gas]. This underlying improvement in our free cash flow will structurally lower our breakeven and increase our capacity to return capital to shareholders." The company estimates it will produce $6 billion in incremental free cash flow by 2029, assuming oil averages $70 a barrel, fueling sector-leading growth during that timeframe. A big driver is its $8 billion Willow project in Alaska, which will produce an average of 180,000 barrels of oil per day at its peak after it comes online in 2029. The company also has several LNG-related investments that will help fuel additional growth over the next few years, including projects in Qatar and along the U.S. Gulf Coast. The growing cash flows from these projects support the company's dividend growth strategy. ConocoPhillips aims to deliver dividend growth in the top 25% of companies in the S&P 500 in the future. It has been growing its payout at a more than 10% annual rate in recent years, including by 34% last year. The oil giant also plans to buy back more than $20 billion of its stock over the next few years. ConocoPhillips offers investors an attractive dividend that's approaching a 4% yield because of its sinking stock price. It expects to grow that dividend at a leading rate in the future, fueled by its robust cash flow growth profile. That combination of yield and growth makes it look like a top dividend stock to buy right now for those seeking an attractive and growing income stream and meaningful stock price upside potential. Before you buy stock in ConocoPhillips, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and ConocoPhillips wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Matt DiLallo has positions in ConocoPhillips. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. After Sinking Nearly 30%, This Top Dividend Stock's Yield Is Approaching 4%. Time to Buy? was originally published by The Motley Fool
Yahoo
20-05-2025
- Business
- Yahoo
ConocoPhillips CEO Ryan Lance on US Shale Growth, Energy
ConocoPhillips CEO Ryan Lance says US shale can grow with oil in high $60-$70 range while discussing energy and oil demands with Bloomberg's Francine Lacqua on the sidelines of the Qatar Economic Forum in Doha. The government of the State of Qatar is the underwriter of the Qatar Economic Forum, Powered by Bloomberg. Sign in to access your portfolio
Bloomberg
20-05-2025
- Business
- Bloomberg
US Stock Rally Set to Stall; GOP Hits SALT Snag; Qatar Economic Forum
'Bloomberg Brief' delivers the market news, data and analysis you need to set your agenda. US equity futures decline, Treasury yields rise amid investor bets that the rest of the world's stocks would outperform US stocks. President Trump appears to disengage from truce talks between Ukraine and Russia. House Republicans fail to arrive at an agreement on the SALT deduction cap ahead of a vote on a landmark tax bill. Home Depot reports before the bell. Conoco Philips CEO Ryan Lance says he expects a return of moderated US shale production growth. Erik Nelson of Wells Fargo says the dollar will weaken if the US exceptionalism story continues to fade. (Source: Bloomberg)
Zawya
20-05-2025
- Business
- Zawya
US shale to plateau if oil stays in current range, ConocoPhillips CEO says
U.S. shale oil output will flatten out if prices remain where they are now and will start to decline with prices in the $50s per barrel, the CEO of ConocoPhillips said on Tuesday in the latest prediction that oil's slump could curb U.S. supply. The comments from Conoco CEO Ryan Lance come as forecasters including OPEC and the International Energy Agency have trimmed their expectations for shale output after prices sank to the lowest since 2021 this year at near $55 for U.S. crude. "The breakeven probably hasn't moved a lot," Lance said at the Qatar Economic Forum in Doha. "I think long-term, if you're going to see oil prices in a comfortable range - maybe in the 70s, or 65-75, we'll still see continued modest growth out of the U.S.". "But we see plateauing production, probably the end of this decade, coming out of the U.S., unless there's going to be another technological breakthrough in our business. And don't bet against our industry." If oil fell below $60 a barrel, there would be a decline in investment and global power requirements would not be met, Qatar's energy minister Saad al-Kaabi said, speaking alongside Lance at the same event. Global crude benchmark Brent was trading below $66 and U.S. crude near $63 on Tuesday. Prices slid after U.S. President Donald Trump announced trade tariffs on April 2 and fell more after OPEC+ decided to add supply faster than planned. With oil prices in the $70s per barrel range, U.S. oil output could grow to more than 14 million bpd from between 13.3 million bpd and 13.4 million bpd now, Lance said. LNG SUPPLY The LNG market will grow to north of 700 million tons from around 400 million tons now over the next decade or so, Lance said, adding the market was growing at an annual compound growth rate of 1-2%. "It's going to take a lot of growth. It's going to take growth in Qatar, its going to take growth in the United States, the two biggest suppliers in the world, to satisfy the enormous amount of energy growth that's coming," the ConocoPhillips chief executive said. Kaabi, who is also CEO of QatarEnergy, added that Qatar, one of the largest LNG global exporters, was "not worried at all" about a supply glut of liquefied natural gas (LNG). "I think the U.S. volumes are going to go to certain markets that are mostly Europe, South America. And our volume will predominantly be serving Asia," Kaabi said. "I think we need all that volume." Kaabi said Chinese and Indian buyers are discussing additional LNG supply from Qatar. He will meet buyers of Qatari LNG in China, where he is flying for a conference. "But we have multiple countries that are discussing with us additional volumes. And these negotiations take time," he said. Qatar began trading operations a few years ago when it saw "money left on the table" when traders were buying spot Qatari LNG. Qatar is currently trading around 10 million tons of LNG, around half of which is non-Qatari. By 2030, it aims to trade 30-40 million tons of non-Qatari LNG. (Reporting by Andrew Mills and Federico Maccioni; Writing by Nayera Abdallah and Yousef Saba; Editing by Louise Heavens, Kirsten Donovan, Alex Lawler and David Evans)
Yahoo
20-05-2025
- Business
- Yahoo
US shale to plateau if oil prices stay in current range, ConocoPhillips CEO says
By Andrew Mills DOHA (Reuters) -U.S. shale oil production will flatten out if prices remain where they are now and will start to decline with oil prices in the $50s per barrel, ConocoPhillips CEO Ryan Lance said on Tuesday. "The breakeven probably hasn't moved a lot. I think long-term, if you're going to say oil prices in a comfortable range - maybe in the 70s, or 65-75, we'll still see continued modest growth out of the U.S," Lance added, speaking at the Qatar Economic Forum in Doha. "But we see plateauing production, probably the end of this decade, coming out of the U.S., unless there's going to be another technological breakthrough in our business. And don't bet against our industry." If oil fell below $60 a barrel, there would be a decline in investment and global power requirements would not be met, Qatar's Minister of Energy Saad al-Kaabi said, speaking alongside Lance at the same event. He added that Qatar, one of the largest LNG global exporters, was "not worried at all" about a supply glut of liquefied natural gas (LNG).
