ConocoPhillips to spend about $6.1 billion in capex in 2019, flat versus 2018

ConocoPhillips COP, -1.02% set its capital budget for 2019 on Monday, saying it plans to spend $6.1 billion, or roughly the same as will be spent by end 2018. The energy company said it is increasing its target payout to shareholders to more than 30% of cash from operations, up from 20% to 30%. The company is expecting to buy back $3 billion of its own stock. It expects 2019 production to range from 1,300 thousand barrels of oil equivalent per day (MBOED) to 1,350 MBOED. "We are running our business for sustained through-cycle financial returns, which is necessary for attracting investors back to the E&P sector," Chief Executive Ryan Lance said in a statement. "We believe we have designed ConocoPhillips to offer investors both resilience to lower prices and participation in higher prices via an approach that rations capital across a low cost of supply portfolio, competes on per-share versus absolute growth, and pays out a significant portion of cash from the business to shareholders." Shares rose about 1% premarket, and have gained 20% in 2018, while the S&P 500 SPX, -1.54% has fallen 1.5%.

Source: MarketWatch