ConocoPhillips stock rallies toward a record after profit beat, raised dividend and $20 billion boost to repurchase program

Shares of ConocoPhillips ran up 1.8% into record territory in premarket trading Thursday, after the oil producer reported third-quarter profit and production that beat expectations, boosted by a big jump in realized prices, and raised its dividend by 11% and increased its stock repurchase program by $20 billion. Net income surged to $4.5 billion, or $3.55 a share, from $2.4 billion, or $1.78 a share, in the year-ago period. Total average realized price jumped 46% to $83.07 per barrel of oil equivalent (BOE). Excluding nonrecurring items, adjusted earnings per share of $3.60 beat the FactSet consensus of $3.41. Production increased 13.6% to 1,754 thousand barrels of oil equivalent per day (MBOED), above the FactSet consensus of 1,733.5. The company did not report revenue for the quarter. For the fourth quarter, the company expects production of 1,740 to 1,800 (MBOED), surrounding the FactSet consensus of 1,779. Separately, the company raised its quarterly dividend to 51 cents a share from 46 cents, with the new dividend payable Dec. 1 to shareholders of record on Nov. 15. Based on Wednesday's stock closing price of $126.51, the new annual dividend rate implies a dividend yield of 1.61%, compared with the implied yield for the S&P 500 of 1.78%. The company increased its stock buyback program by $20 billion, bringing the repurchase authorization to $45 billion, which represents 27.9% of the company's market capitalization of $161.05 billion as of Wednesday's close. The stock has soared 38.5% over the past three months, while the S&P 500 has lost 9.5%.

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