Entering text into the input field will update the search result below

ConocoPhillips' (COP) CEO Ryan Lance on Q1 2021 Results - Earnings Call Transcript

May 04, 2021 4:43 PM ETConocoPhillips (COP)13 Comments
SA Transcripts profile picture
SA Transcripts

ConocoPhillips (NYSE:COP) Q1 2021 Earnings Conference Call May 4, 2021 12:00 PM ET

Company Participants

Ellen DeSanctis - SVP, Corporate Relations

Ryan Lance - Chairman & CEO

Bill Bullock - EVP & CFO

Tim Leach - EVP, Lower 48

Dominic Macklon - SVP, Strategy, Exploration & Technology

Nick Olds - SVP, Global Operations

Conference Call Participants

Neil Mehta - Goldman Sachs

Jeanine Wai - Barclays

Phil Gresh - JPMorgan

Roger Read - Wells Fargo

Ryan Todd - Simmons Energy

Josh Silverstein - Wolfe Research

Stephen Richardson - Evercore ISI

Doug Leggate - Bank of America Merrill Lynch

Bob Brackett - Bernstein Research

Paul Cheng - Scotiabank

John Freeman - Raymond James

Leo Mariani - KeyBanc

Raphaël Dubois - Société Générale

Neal Dingmann - Truist Securities


Welcome to the First Quarter 2021 ConocoPhillips Earnings Conference Call. My name is Hilda, and I will be your operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Please note, that this conference is being recorded.

I will now turn the call over to Ellen DeSanctis. Ellen, you may begin.

Ellen DeSanctis

Thank you, Hilda. Hello, and welcome this morning to our listeners. I'll first introduce the members of our ConocoPhillips executive team who are on today's call. We have Ryan Lance, our Chairman and CEO; Bill Bullock, our Executive Vice President and Chief Financial Officer; Tim Leach, our Executive Vice President of Lower 48; Dominic Macklon, our SVP of Strategy & Technology; and Nick Olds, our SVP of Global Operations. Today, several of our executives will make prepared remarks, and then the team will take your questions.

Before I turn the call over to Ryan, a few quick reminders. In conjunction with this morning's press release, we posted a short deck of supplemental

Recommended For You

Comments (13)

Rex Rode profile picture
Does anyone else feel like that rig sinking is karma for the 1 cent dividend increase? That slap in the face, still stings.
Michael Fitzsimmons profile picture
@Rex Rode - yeah, karma is a funny thing ... but at least everybody was ok. Pretty odd for the whole damn thing to sink. Anyhow, the rally we should have had yesterday is on full-force today. Great to see!
@Michael Fitzsimmons - Punch-through with jackup rigs is an uncommon experience, but not always a complete disaster. Quite a bit of engineering and reconnaissance work goes into setting a jackup rig on location, and further procedures while jacking up are employed to avoid a punch-through. It's not always successful though, as evidenced with this rig. It's uncommon for it to happen, but not odd; it's the top risk when using this type of drilling rig.
Michael Fitzsimmons profile picture
@12Aggie - well, odd and uncommon are the same thing in my book. Fact is, this simply doesn't happen much. Doesn't really matter though because it is relatively small potatoes in the big scheme of things. I'm much more concerned about all the cash that Lance is hoarding and will blow on stock buybacks as compared to the rig sinking.
cenc profile picture
nice. Got them cheap, recently doubled down, and I am still kicking myself for not buying more.
Rex Rode profile picture
I like everything about COP except how they slap their investors in the face with such meaningless dividend increases (c'mon man, a freaking penny this year!) Instead of the the buybacks I would prefer seeing COP increase their dividend similar to XOM's
cenc profile picture
@Rex Rode probably depends on your tax perspective. I am not in it for dividends.

still 3 billion in stock buybacks this year, and debt pay down is not bad.
Michael Fitzsimmons profile picture
@Rex Rode - Exactly right. Lance thinks shareholders can't do the math and he'll get away with the buyback bs. Here's the math:

COP ended Q1 with $7.3 billion in cash ... and with 1.3 billion shares outstanding, that equate to $5.61/share ... and the current annual dividend is a "whopping" $1.72/share LoL

Not only that, I bet COP generates ~$2.25 billion in additional FCF in Q2.

Not to raise the dividend, given the already A-rated balance sheet, is criminal in my opinion. And yet another reason why energy stocks suck: CEOs, executive mgt teams, and BOD's too busy worrying about how to increase their already massive compensation plans rather than rewarding long suffering shareholders with dividends.

In an era of energy abundance, Lance's "30% plan" is already too low ... 50% is better. Then, to make matters worse ... when 70% of the 30% is buybacks, the ordinary investor obviously is getting hosed wrt the dividend. PXD's variable dividend polichy is superior to COP's over-emphasis on buybacks, which as we found out last cycle, did absolutely *nothing* to increase shareholder value. Now all those shares were re-issued to buy Concho and give those shareholders a massive dividend increase, while the COP shareholder just get hosed (again).
@Rex Rode Lance is not shareholder friendly, it is what it is. As such, IMHO, COP is not a stock to buy for dividends. If I need dividends, best for me to stick with great companies like CVS, PNW, WPC, LMT, etc.

But that's just me!!!
To report an error in this transcript, .Contact us to add your company to our coverage or use transcripts in your business. Learn more about Seeking Alpha transcripts here. Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.