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EX - 99.1 2 tm2127670d1_ex99-1.htm EXHIBIT 99.1 ConocoPhillips NEWS RELEASE Exhibit 99.1 925 North Eldridge Parkway Houston , TX 77079-1175 Media Relations : 281-293-1149 www.conocophillips.com/media Sept. 20 , 2021 ConocoPhillips Announces Significant Enhancement to Multi - Year Plan with All - Cash Permian Asset Acquisition ; Increases Ordinary Dividend ; Improves 2030 Emissions Intensity Reduction Target HOUSTON - ConocoPhillips ( NYSE : COP ) today announced several actions to further enhance its compelling , distinctive investment proposition . The actions are consistent with the company's financial framework , its stated capital allocation priorities and its commitment to playing a valued role in the energy transition . Materials describing today's actions are provided at www.conocophillips.com/investor . The actions include : A complementary , highly accretive acquisition of Shell Enterprises LLC's prolific Delaware basin position for $ 9.5 billion in cash . The assets include ~ 225,000 net acres and producing properties located entirely in Texas , as well as over 600 miles of operated crude , and water pipelines and infrastructure . Estimated 2022 production from these assets is expected to be approximately 200 MBOED , roughly half of which is operated . gas An increase in the company's quarterly ordinary dividend from 43 cents per share to 46 cents per share , representing a ~ 7 % increase and a current dividend yield of 3 % . The dividend is payable on Dec. 1 , 2021 , to stockholders of record at the close of business on Oct. 28 , 2021 . In conjunction with this transaction , the company also announced it will improve its Scope 1 and 2 GHG emissions intensity reduction targets . The prior 2030 reduction target of 35-45 % on a gross operated basis will be increased to 40-50 % , versus a 2016 baseline , on both a net equity and gross operated basis . " We were presented with a unique opportunity to add premium assets at a value that meets our strict cost of supply framework and brings financial and operational metrics that are highly accretive to our multi - year plan , ” said Ryan Lance , ConocoPhillips chairman and chief executive officer . “ Our financial strength allowed us to structure a competitive offer for this transaction and we are very excited to enhance our position in one of the best basins in the world with the addition of Shell's high - quality assets and talented workforce . The transaction will be funded from available cash while still retaining a significant level of cash on the balance sheet for general purposes . Our underlying business drivers will be stronger and the expanded cash flows derived from this transaction mean shareholders will benefit from higher returns of capital consistent with our commitment to return of capital of at least 30 % of cash from operations . ” Lance added , " In addition to enhancing our base plan , this transaction also enhances our ability as an E & P company to have a valued role in energy transition by accelerating progress on our Triple Mandate . The objectives of the mandate are to responsibly produce energy to meet transition demand , generate compelling returns on and of capital , and achieve our Paris - aligned targets and 2050 net zero ambition . The assets we're adding are consistent with our low cost of supply strategy , which is designed to position our portfolio as the most likely to be developed as the energy transition progresses and the need for oil and gas is reduced over time . The assets we're adding improve our ability to generate returns that are consistent with what investors demand through cycles . And the assets we're adding will bring more low GHG intensity barrels to our mix . This deal hits on all the objectives of our mandate . "