COP - Earnings call transcript Q2 2021

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Operator

Good morning and welcome to the Quarter 2, 2021 ConocoPhillips Earnings Conference Call. My name is Zanara and I'll be the operator for today's call. At this time, all participants are in a listen-only mode. Later we'll conduct a question-and-answer session. [Operator Instructions] I will now turn the call over to Ms. DeSanctis. Ellen begin. may you Ellen,

Ellen DeSanctis

Zanara. Good our welcome morning and to listeners. Thanks,

Vice and Olds, today's the Vice Bullock, and Lance, President XX Tim Dominic following President the have Senior Senior Strategy President call: our Executive our Operations. Financial and President Vice Leach, Technology, executives Vice Macklon, Bill We our Lower of CEO, and Strategy on Ryan Global Technology,, President of Macklon, Officer, Senior of and our Executive Nick Vice our Chief of Chairman Dominic

our June keep of everything Also some Zanara if runs session. short cut technology to as and Given ensure recent we Q&A XX plan to give ask done the logistics, as our on this today's please market because to speakers offended then mentioned, you update, call, people our today's call-related want don't very we'll to as a are front. many begin smoothly prepared get participating remarks questions To We've get best morning, possible chance we our off. during virtually.

reach jump can queue back the Investor the to where into anytime you can call. Relations You after out

measure the again morning's to and the our refer and and as reconciliations Actual today. make includes flow some forward-looking short our corresponding website. measures periodic to turn conjunction release a we to earnings call GAAP non-GAAP a And Finally, morning's could some on I'll described material sensitivities. And due deck the results SEC filings. flow expectations. second-quarter press factors Ryan. cash differ to today's press summaries, can We'll cash that in also we'll press today's statements now our of on in in in this found over and some call, release posted guidance usual, Thanks supplemental and release, few with reminders items, this current finally be then nearest based financial

Ryan Lance

market XX our update widely pretty we, laid on was come outlook update, out the followed again, heels multi-year received Thank a The June Today's right we results quarterly Company. Ellen. compelling some during and you, of which the feedback. positive for

update, say timely given As to to up volatility very convinced recency you'd isn't it we except share to of the much relevant news pleased results announced we remain morning. this we're it at there given the the time, follow sector. was expect, today, incremental in and seeing And with strong quarterly ongoing we're this the our

especially persists the we update at because declaring As and sector, you we that off in the our E&P believe we recall, we today. that to sponsorship in moment defining on know investors equities by Oil It's sector have and need kicked part for are companies, macro part leadership a been part due sector uncertainties of recently, to capital of and us follow. requires hold that and to long-term of that discipline a the investors. will on well as see the as evidence on returns clear will conviction volatile

financial is, other now of macro question realities cyclical investors in are words, consistent for best The of to returns-focused the downturn. record who cash the meets execution. are coming S&P. investors, them. lead of In for met with executing has That's and The requires strong, than leadership where investment conviction companies espousing performance, returns plan thin? The a In setting capital a XXXX the deliver returns truly flow micro equities generates competitive this looks that that and with the the ongoing the performance investable a these more case defining matters. through with a commitment and and and requires June, compelling road. around a and Both can can also credible moment combination free a thick for ConocoPhillips unique plans, of Execution and who we ESG. view. constructive highly discipline the execution plan, offers it also course successfully reasonably a massive Of virtues requires requires out everyone is need with who who consider to case better expectations credible track business rubber leadership view. of equities where for is and positioned and

You plan on information you won't execution. restate the quarter's June, you them. underscore. other at performance, plan this release to the a so want you here I -- key work. that themes words, supplementary today saw takeaways and that This are June few in provided saw In details the seeing and morning's I But are see and

ran quarter, During business the second the extremely well.

went Our programs American include did multiple ongoing as North in well our and activities plant Alaska shale as plays in the as smoothly, These the regions. the our international across core activity in turnaround Company. programs

sector Every proud we're in of and described driving in during the for part can't role a busy and on While prices this broadly has [Indiscernible] our Financial progress the We're results. of material. noise synergies the June than XXXX our guidance has for adjustments projects June good behind operational efficiencies updated performance. talking business efforts We also ignore the is transaction and that continue to mention straightforward. were year. more continue deal this on our our quarter's ConocoPhillips execution, we're a are market Quarter's And issued to integration year. quite a most benchmark month we Not streamlining in team delivering that underway I'm done. And our meet of that impacts very showing specifically. higher with of not performance their discussed in But ago. emission us. about done we underlying make to we results The have up track team certainly XXXXs this we were accomplishments in I'll Overall factor our the XX upheavals known reduction a in

because to diversified and capture what the benefit we're Company is That's our to demonstrate entirely ConocoPhillips However, in they is when We're unique almost prices regimes. royalty of our the of unhedged. results somewhat tax we're and higher do occur. that capacity

our about the year that continue prices. to distributions. after the still importantly, prices, levels, Quarter distributions reference, months ConocoPhillips XXX of reactivating prices our in low on And shareholders. total engage allocation for differentially adjusting and we announced you and planned if We and you bringing with the ago. our X $X our want exceed continue and a ordinary greater per post-Concho performance, barrel the years. we repurchases exceed target year returning would just line, of this credible of we distribution to through increase to prices reliable to later billion can June, cycles. we more now of CFO they're XXXX X showed know solid believe a record allocations. realize to how update, dividend be transactions, math resilient market works ago, quarter. we in Capital return our roughly our know a but go from perfect the sensitivities, can to cash issue. a when Concho expenditures our of change is At towards the for XX yielding sound XX% at to reference WTI estimate $XX impacts answer, our which are billion do commitment Now, for operations that's And Cash programs. of expect the course, meet than distributions we but we year, bottom and nearly of capital And of returns cap another demonstrated this covered matters. want current about gives continue CFO time, the while clear for could upside at XXXX are full delivered month The announcing X% alternative a described certainly of there we X.X other per XX We track we almost sense Capital transaction-related X% have market for billion Bill a we greater towards we as the you a the representing billion evaluate would than in or X share of multiple in just mix, billion prices. very X.X market just million isn't of additional only today, our And and such to our companies one-time we on too and barrel

So to plan. business great runs and the putting and the We're time we busy a shareholder-friendly model have execution board. summarize, after hitting a our on stride

the maintaining goal. enlist discipline. all underlying That's are that's We running That's we not well, on to what work and we're our The is extremely our how Company sponsorship, done employed. ConocoPhillips capital about. financial and market long-term returns is improve with

we Now midyear. where recognize at we're we're to pleased young. the at here But year is still be

for programs how process market evolves and our XXXX, internal our on setting are the the closely of plans Looking capital focused priorities plans. this we're and remaining look are an about forward of the to executing squarely year. XXXX and ongoing to our watching discussion with second progressing. forward and We'll macro beginning Meanwhile, plans how actively our budget engaged half our stay

call the of call. and over the Operator the to turn the me begin let portion So we'll Q&A

Operator

Thank Absolutely. you.

We session. Sachs. from from first any question questions. Mehta our Instructions] Neil question-and-answer will comes And on [Operator now Please ahead. Goldman begin go the Waiting for standby

Your line is open.

Neil Mehta

for team. me. morning, questions Two Good quick

for is you, Ryan, one M&A on current perspective First this in your market. just

more minus free to cash free might and a simply weren't that's transaction that think then the You in do set how opportunity it X Was year type pieces we but flow either mid-teens billion of one relatively or implies Can for last we flow, say be Quarter? is nature. that that itself. this selling? missing terrific But Annualized the the a to related for clean negative flow be about here Bill would just the positive buying to you and of did other make And the a cash about sure there yield. out Quarter just CapEx any cash one-time want

Ryan Lance

-- on Well, pieces the we Bill what that that the thanks, and your When we we chime Phil. our portfolio uncompetitive. approach constantly second inside I'll to look -- M&A at like market, and are let I the question. assets portfolio about in we constantly to know is start when the the side think reviewing on

So both sell and buy we're assets constantly to portfolio. we're opportunities screening and to trying high-grade the constantly

a makes today the today. certainly buyer's seller's necessarily feels tend I we more come I -- market, to makes or But market that environment the see that a assets like to it don't think it think

think and of keep back we've value we matters January. just earlier I and our Neil. and today in continue patient, is or the discipline the to Concho the we And through being at framework through what in around cost continue disciplined XXXX, that's to supply and the that of just rigor transaction rigor back that simply described us did

may the more that even market now I think require ever. than

business. And over the about maybe him So that's bit on and cash let comment how the turn Bill about think it inorganic I'll the of a think I we side flow. to

Bill Bullock

morning, for good It It for Sure, clean Bill. basis. clean quarter and it clean cash a both cash Neal. was a was This earnings. very both is on was

As rates, you're to though. just run items looking I point consider at to you your X

we first we the that CFO. this status quarter reduces requirements. the is And and quarter pension, go-forward release some the above for million funding to the mentioned reduce contribution our a funding financial and make Also need reduced leads payments. plans The premium to pension pension in one the [Indiscernible] our statement the in eliminates pay increased second plan that press and second volatility to $XXX discretionary that did of PBGC XX% the contribution

to good sense us make for use really did in cash the Quarter. of that So

about quarter second to And of so and rates quarter. that That received APLNG the about as brings I million I million distributions. and attention the your We point distributions rate. thinking a year-to-date XXX for XXX we the one And be you're other reduction XXX out the run APLNG third XXX run would million anticipate as from our in in about in year. that's million, draw

sales So we on thinking distributions And rates receive lower price little LNG that. sensitivity and break a lag, the for quarters APLNG at quarters as there's you're run the for and just very the pretty year about distributions in fourth -- that first reminder, to the higher and as typically in locked there's year. so those LNG the the long-term that distributions third remainder -- in and of are or second because

is with the for you're rest sensitivities flow rule on to as we sensitivities. for that rates million of you so thumb annualized every And And our about direct run about still hold. a bang I those you $X CFOs And the provide, thinking look those, change at be ought to $XXX good of to WTI. in year, million pretty with how cash

Neil Mehta

guys. Thanks, makes it it right, All easy.

Operator

you. Thank

is question Roger Read line go next is from from Please ahead, Our your open. Wells Fargo,

Roger Read

the of you It's overall industry interesting, Good looking Ryan, on easier do kind companies an well. at Thank for quarter. the to mentioned quarter across congratulations you. morning and

some that separate may and So you inflationary creeping What to of We let's over you would are of next ask as what do will some think there. continue from look maybe about Headwinds those things that the the think of be quarters. question, the may issues some to companies. we up the become maybe several that to you what allow offset out

Ryan Lance

Yeah, thanks. Roger, color maybe comments, I provide to Dominic little well. a of add that some can as can bit

if pure-play certain base experience spend categories of going to one of are and think -- Operator, a you're you're you're I inflating. that kind probably

synergies the that global the now, capturing other the the not economies right I best like are of is leading that think we're COVID plus ConocoPhillips advantages some fact the lot a inflating. areas Maybe pandemic. the around of diversified and transaction companies, so recovery world Concho we're still the from practices the from the are has

if and and able would So the bit this thing missing seems pretty get Roger's as remarks of comments, my prices in next can know question been just are cash happened, go more, know your described the year we're of differentiate analysts have on and nature the from that's upside and to know eminently flow year, that the add from it position, mentioned you into our my you you hedged. inflation you DNP I we the ourselves little think the more conversation question. you few but other the torque it's in in one I'm We any I a to be what if even surprised you -- ConocoPhillips from could hedged add the that the to there expect manageable shouldn't think as part we I of that, that a haven't to will Do asking clearly. s aren't opening portfolio. Dominic, unhedged opening regard what don't

Dominic Macklon

it scorecard, mean updates operational well. chain in supply have Thanks. that I on from very a covered with said, dollars that the important the over the are still -- time is does I point the but did mean, done that Ryan. Roger, last give I well mean we wind Ryan's think we our transaction. our give will of the synergy think market update not sails I we be billion and will we that and efficiencies. sourcing we efficiencies last

that. So we really still have the wind in our sails on

Of Lower internationally. on course, cement Ryan the some inflation but a are because crews, seeing seeing tubular being we deflation helps certain pressure still really Company some we're frac in in categories global XX, like in said,

really an out inflationary it I We interesting transaction. coming I think still momentum the to is that's have we're manage because do think question the of well-placed think we and effects.

Roger Read

able the that. un to hedging to that appreciate and been the strength maintain. you've imagine I hedging sheet balance the back I And comes

thank and that, on you. congratulations So

Operator

you. Thank

Todd Our Please Piper ahead, go from next question Sandler. comes next from question. Ryan

Ryan Todd

debt This buybacks share morning, of the a would continue here. recent pace environment ones a than the far on given on remain obviously, up we've the bit the frequently generate couple a to that Quarter may just to second materially. have First outcome or saw know follow-up. capital about pay years we you're I Any we efficiencies, there that that everybody. or debt performance, cash the the is your of think the of performance than the target a some far costs, you I you and the our thoughts aggressively? to of one-off combined be you that terms reductions certainly the that supportive, of in exceeded Portfolio quickly this expectations, the on estimates then as discussed saw And talk and I the the you impact can forward, Quarter. look exceeding versus some Should First talk ramp you free buyback. either at be Conoco Lower quite X potential without point, of Thanks. past to buyback was marketing resemble little Maybe well legacy may hard but more know more it you during acquired to this down things and targeting and assets quarters Day, Dividends maybe, Analysts via noise Great. Shareholders XX efforts. return more Good Concho can outstanding, business but

Ryan Lance

comments. maybe some Sure. Thanks, I'll Ryan,

debt accelerate the market debt Second, can years, right that. gross We're more and and do that, shouldn't of goal, optimization that in we about X high of level, think it's we'll maturities natural beyond at our talked a but we predicted can XX are to are I'll tailwinds those the few and chime some in some he comfortable on that a our were remains the let -- we that details I the take balance that the in that bit. or debt. at through update to target to provide necessarily the June Bill will now. little [Indiscernible] over plan going the Bill next then that and have I'd Tim sheet, trying we at point, this retire our off trying commodity place. reduction right increase announced feel say Lower the a But plans about still it there pretty not, to

and be in Tim I the performance to want to of about that Maybe to then let ought the XX. shareholder. the back Lower you if incremental capital anything add any So can to returns Bill, in chime

Bill Bullock

Sure Ryan.

multiple that you should any So end previously billion will that comes as we expect due. have we're cost before in maturities how cost us the debt, we to debt as position factors, it XXXX, dollars retire right coming sheet target. be said, debt, now. including were to about a But issue retire to the with debt balance refinancing approach to debt debt reduction potential depend in And a of really that broader strong do on we decide the and reduction and due

conditions evaluating think portfolio. us should I debt be in you to transactions market as expect consider so patient our And reduce continue to to we

Tim Leach

in the of to When I my we my as performance to set our that I'd higher. be the business, performance the assets, is technology a the levels would we're the have the update, couldn't thing good of take communicated market excitement we're only Lower is you really discontinue. XX about that of think of of getting efficiencies that different out our broader to applying really, business the expectation add

it's a cash So driver flow of real value and creation.

Operator

Thank you.

next Our comes question ahead. America. of go from Leggate Bank from Doug Please

open. is line Your

Unidentified Analyst

Hey, M&A on an A the is Conoco evidenced the locations, for on acquisition, and guys. good etc. for Concho from morning, of first has the affection right maybe questions assets Doug. obviously price Permian off This Clay me, couple by right at

in holes no are Conoco's Permian today. position there So

So would, to the whether a there fill bring table is what would ConocoPhillips? consider no you you but large question is, that right bolt-on And would need to price? if the for at the acquisition

Ryan Lance

I shouldn't opportunities So think both discipline earlier, supply we're the I really we've with framework disciplined we in that at the to that that you rigorous have to kind that framework we've think We are on selling know and be they about in side. our I that to areas surprised the brought on buying compete assets pretty a the costs if and operate. answered to contiguous that the how looking within as acquisitions. But and consistent and done where have we like patience the we, think we we framework of

portfolio. or Alaska, we've I but in not around our what elsewhere look history So Canada, just and Permian, performance, done, the would the at

how look inorganic we're pretty that's pretty we it -- kinds about we consistently at opportunities. and those So of think

Operator

Thank you.

from from Our Phil ahead, is Morgan. your open. line question comes JP Please next go Gresh

Phil Gresh

for uses Yes. me. questions guess Hi, of good I a bit follow-up cash. afternoon. just on Two One, a of

reduced said, sheet billion right nearly time. the Ryan's equivalents $X point at and now, have answer, this data short-term as in that cash really you You on you balance looking aren't at of

looking you're be shareholders crews us linear about Thanks. update thinking more or with do could the how there would question to second the on of big of So the trigger rather the by And cash the counts back to in optionality optionality? X, have how Is half return you the you and latest a for you're even balance think for then second of about this cash sheet. give where rig frac and you year? your you basin activity stand just and just levels

Ryan Lance

of Yeah. kind All right, the on thanks, Phil, big I'll chime let Tim in X.

as detail sheet uses purposes. cash, that communicated As carry a the the and on of quite in And reserve, described and before operating for broadly, strategic some lot past. cash far and we've we the balance of like of we've in

shape, Bill commodity sheet think price with today, as seeing earlier last question. on the we're in balance I environment the that described the is great

supply our to prices as means, market. we continues the incremental is hold. sheet. can expect be arguably fact should of is if million sitting commodity a yet volatile on the imbalanced. that build beyond flow pre-pandemic seen how got if I returns -- view levels pretty not a think balance they'll free more that and to cash to spare barrels the market and we're above The So our the continue looking Shareholders X these in and cash start demand recover day to still you the get or of that We've getting necessarily of incremental to lot

macro Tim, we'll and market, strategy inform XX could sheet expect that have we you the a on balance volatility, And Maybe, So that which comment holding of continue and will of which we we strength forward. around frac some details quite sheet. that cash like the rigs the balance lot still today on why is to the spreads. our going Lower distribution watch

Tim Leach

Sure.

currently throughout And in we're we in X of X.X in in to spreads, half a running the Eagle of levels the X XX, expect we Permian, steady Ford. far year, Lower Lower Eagle expect about the investment the first the of those year. XX that in Permian Just we the pretty We're XX as rest running in the seven the activity invested X stay so reminder, billion remainder Ford. remain the in rigs throughout the rate And constant to the and the frac XX, year. of

of big and have. size One scope of we the the that benefits

X rigs We we're also our eye partners close running activity try to other keeping what have and big that see on various with a doing. operating the to in is model and that

Ellen DeSanctis

take the question. we'll Zanara, next

Operator

Thank you.

Our comes go Paul Scotiabank. Cheng next question from Please from ahead.

line open. is Your

Paul Cheng

Hey, guys. Good morning.

Ryan Lance

Hi, Paul.

Paul Cheng

questions. Two

you First, is [Indiscernible] how going price potential to the source of next a about even look the that in over current are the fund can is several discuss your that cash progression statement flow How's commodity like years. normal.

share second is, you question there. what at some, -- I from market that producer, the can insight if The us Ryan, [Indiscernible] see some, do give they don't know you maybe operate

the concerned publicly good. about discipline the trade Company, there? think Capital are we pretty in the are seeing I private activity are the liable what But side, you

Ryan Lance

you Let Paul. little there up a -- bit, me broke

around is question around operators the question and private last your first that I debt think I think.

Paul Cheng

years the The prices. just cash first deferred that as over next you the flow guys and tax current how several to that the of question source commodity for given relates a

Ryan Lance

Okay. Thank you.

clarification, view the about second to Thanks course deferred can or you're that XX% taxes But of plan the of they your talk I probably way they million the in on the today. your X Paul. one, Lower bit Sorry. because production let only they place the for the XX percent general XX of over in are a increases representing about roughly about in to. guess private current a the But for point. are referring active barrels side, that the we I so the day. about rigs of running It to tidal pretty account Bill are

we out of next run as years. the of think I think couple forward, going it over generally acreage they some best their about of

rocks really an and the quality we That's the driver see rock from growth public companies. best don't higher U.S. coming versus have on tidal a being the the So going to impact to ConocoPhillips strong the on production like the dominant outsized companies depend to them and having private growth.

advantage coming as We're see taking capital to that think I investor shareholders of the maybe as the don't commodity operators. value on they of back really they go production as disciplined forward. the certainly they private on we to price continue you increase their their the to the in that's returns of that's and area while well focus are incremental some short-term, have pressure environment the of do the properties trying although out

thing, don't So, it to U.S. a play looks short-term ell we will our think what be long-term like. title driver the

me -- in let So chime ask on Bill question. the next the for to

Paul Cheng

one, Do can be They year, the forecasting or million there's ask barrels is next years. industry some that consultant I to day, that operator. next couple Before just may of next [Indiscernible] year production you able believe per grow the by X.X that? the

Ryan Lance

probably that be think probably that we much, rig of kind would would an so of That kind half their load. be end don't would I current or view that upper way at we the Paul of estimate our of estimate

Operator

Thank you.

Our from [Indiscernible]. Dingmann Neal next comes Please from go question ahead.

open. Your line is

Ryan Lance

add that answer. can Bill follow-up can Maybe Probably could Paul one question. address other Paul's just have with [Indiscernible] I Bill if

Ellen DeSanctis

in the second. answer question. with Yes. going break to Zanara, second Paul's to We're hang on a

get right we'll back you. Neal, Sorry, to

Bill Bullock

price significant for quarter. of deferred this taxes, cash deferred loss it's tax of Bill. due in our of in reference that quarter, reference by quarter. we And this free component what look All be On worth if a to the right. about at that $XX this is Paul, our deferred taxes material at really $XXX would utilizing at primarily that $XX businesses update if source tax-paying billion we But carryforwards at the you June, prices we all flow at back had U.S. to showed market we you not million of showed as a WTI. look -- position That's a about tax XXXX. would expect cash

expect we'd earlier, bit source late taxes aren't maybe to to force. continue, a current barrel into prices, at or XXXX prices of move current under deferred a XXXX normalized position tax-paying tailwinds really the compared should Now, But a $XX prices XXXX.

Ryan Lance

we Thank go you Zanara. to now Neal.

Sorry, you. Neal, thank

Operator

go please your Neal, line apologies. you. ahead, Thank is My open.

Neal Dingmann

first you. continuing opportunities oil either guys I would great differentials thank wondering in the or market marketing, have you had the export the just two you and other to then job was done marketing a see there potentially just just have. been repayment. Sure, to the higher second, your your would a see sort you The free repayment co-exist? on or I'm about debt opportunities Thank is great debt item two flow I of primary are they repurchase, talked share has that of I now, a say year, Those cash this as sorry, you. over the lot see

Ryan Lance

On your one, capacity we're doing to Lower prices. in XX. U.S. first our been our coming Thanks, has with an marketing fact, some export and organization commercial out And some uplift that direct we've netback of margins our for the Neal. got of oil

important continue Southern see even our longer-term in opportunities debt be those and your in second as able as up some the a continue well. to equally dominate. But right but question, optimization in Asia doing, as that. shareholder are we to returns near-term for grow the and Once capacity as That's some described, opportunity to our today. retiring Bill unique and then balance primarily in reduction it debt of capital market pick looking to well. of to provide gross sheet America plan, maturities debt through going opportunity debt optimization plan we some continue repurchases customer announced at of doing to to the obviously of share our the as back that to export conditions at, us to now have goal the that our opportunity and and customer, that South do in right then a that's not given market. that that We of going would in direct it's that shoreline doing some consistent And we're an and the an On to fact, to relations get access of we're we traders dual-track

Neal Dingmann

at way to Thanks. Great look it.

Operator

you. Thank

from is ahead, line Our Holt. Jeoffrey open. next Lambujon Tudor, question Please from comes your go Pickering,

Jeoffrey Lambujon

morning. Good my Thanks question. for taking

of on which very very about me and plans in for exceeding of those plans. been consistent one about Just clear terms capital, in terms return of you've

out above center if cash an down put the outlook threshold return the have for look a consider you and for keeps help the thought internally can dividend how guideposts of returns, and even process aggregate year, in are a parameters that to that flow the just it's for or further remind cash whether you and nailing think front any about and think of you've given as capital that's you for consideration metrics us been Just some us what As free trying variable? board about level optimal you discussions buybacks understand that forms certain with shareholders. that that in a multi-year can the any the target over

Ryan Lance

back Thanks, capital our flow go owners original returned cash back Jeff, we've back been for think models the our history, an look last that that of the a I it's return you cash XX%. not I'd been back expect differentiation is and we've of free some and is of averaged maybe reading because base. you our our between others of shareholders, to our and our that fairway base. XX% at X should CFO the That's shareholders sideboards It quarterly shareholders. that to described to to about about hearing our that's annual greater and to we've That's the than really basis years, on over

more So are because as to CFO shareholder prices expect the distribution. get grows up, commodity should

that's And cycles. but how respect return ordinary -- resilient performance we the through we're measuring ordinary be the in S&P, want we're ordinary said of grow the that we've our that be the capital Now And want to ourselves. then to we've dividend That's to dividend, our we're chosen capital. We competitively measuring on how with dividend. performance want of to how of we return, competitive. measuring the with that's our --

to to So we want that cash pandemic. grow the year At want higher end be our to -- And we additional through torque grow able don't last we and we the recognized of flow to get shareholders well. returns afford our it. described the as cycle, then we is going demonstrated our which we should that with prices as low

at to a minimum, expect that going be should to and You XX%. come it's

through buy shares the channel. with the cash not a buyback -- at down best great chosen continue threshold watch ordinary channel our this to it are returning So distribution CFO-based my what in like now -- XX said we it's remarks, the that, XX% as we've hybrid to a feel it's maybe that strong our maybe but in it flow-based a share what market. with the as we'll watch is channel we right it's And a the yielding today, greater seconds the free model, meeting we road. is dividend continue a opening combination, about I model. Well, today, than think is to combined

Jeoffrey Lambujon

Got it. you. Thank

Operator

you. Thank

Leggate. question line your is another Please Doug have go open. from ahead, We

Doug Leggate

Thank you. folks. apologize, I

Ryan Lance

real The Doug.

Doug Leggate

a -- number going enough there's Ryan. There's calls of on,

Ryan Lance

I understand Doug.

Doug Leggate

hate coordinate I'm get not guys fault, -- yours. we to a I better. kidding. you little Their need to

Ryan, aside me, a hit the forgive a want of I'm examples. going dividend again. I joking question couple to on So pre-phase

my value So that shares, shares fairly BP us more day, on increase. channel the least, up dividend of channel. up recognition are dividend I dividend Shell announced announced to market it the at is their were than the to tends point increase, Their a guess X%. buyback that be a through, significantly. seems

done have of your guys portfolio. resetting a You phenomenal job

You market better go were the flow Why you've of the spending. that pay on a bigger and to prior not for? got cut $XX today spending dividend X/X cash will dividend you the billion back free to

Ryan Lance

the and to dividend and reliable, ordinary and a come think through the I XXXX, through that period raising learned you've coming of there's and is I through here XXXX and the the last the dramatically place we experience over Doug, so there a is to to Well, it's cycles over want get it, past is back XX% is and predictable, important S&P the of the that got to through it what's the the and important comfortable where or made sure growing an the cycles like make talked to done people our it of transparent, X ordinary in where feel more with X consistent, have distinction pivot cash the go that of be the the We it's dividend on they XXX out about downturn going of we've lifting we said, with time the you, reductions that And we history, back heavy are you we course referenced but the maybe cut it's lot works out place competitive cycles. we've to I the works it's shareholder forward that it we growable basis. we're an now as ongoing dividend. like flow pretty years. And

from get ago will I will that where maybe to today, the you in is case. case wasn't that could cash more be of little it favor to a we're So you'll return and looking particular it us I open but evaluating that it. now, X buy. pretty And of shares it piece more to months a our as or about We're it. today, we're at XX know your point buybacks, bit I don't what point than a but are good well, from and think couple years hear

Doug Leggate

I can for our and Forgive don't me issue I on efficiency if capital think your view it keep it. think this in getting but rewarded in you're support pounding I portfolio

if So that's question. much so on okay, for I'll my taking but thanks Ryan keep pounding that

Ryan Lance

you. thank Doug, you hear I And

Operator

time. the to Thank I you. further call no turn over this at questions would like we back have Ellen. to And

Ellen DeSanctis

of you in and the to more you're forward few than us safe. our over Thanks to call. with morning. check to And look months. welcome all engaging any this Be appreciate questions, participants at Zanara. with Thanks, the next after the Really point

Operator

you Thank Thank concludes And participating. gentlemen. This conference. today's thank you, you. ladies for and

may You disconnect. now

ConocoPhillips (COP) 3 Aug 212021 Q2 Earnings call transcript