They say oil is the blood of the modern world. A messy business, naturally. And like blood, it flows, sometimes freely, sometimes not. People chase it, build fortunes on it, and then, well, they don’t. But for us, the dividend hunters, it’s about the trickle-down. The little bit that sticks to our fingers. ConocoPhillips and EOG Resources. Two names. Both promising a bit of that sticky residue.
ConocoPhillips (COP +0.21%) and EOG Resources (EOG +0.69%). They offer yields. 2.6% and 2.9%, respectively. More than double what the S&P 500 coughs up. It’s not a king’s ransom, of course. But in a world determined to spend its way into oblivion, a little extra income is…something. Something to hold onto.
Digging for Black Gold (and Dividends)
ConocoPhillips, they’re big. Low-cost. They need oil around $45 a barrel to keep the gears turning. Not much to ask, really, considering what we ask of the planet. They’ve got projects planned. Four of them. Long-term. Last year, they made $7.3 billion in free cash flow with oil at $60. Easy money, you might say. They paid out $4 billion in dividends. The rest? Piled up. Like so many regrets. With prices higher now, they’re swimming in it. Fortifying their balance sheet. Preparing for the inevitable.
EOG Resources, they’re also efficient. Made $4.7 billion last year. Paid out $2.2 billion in dividends. They need about $50 a barrel. Not bad. They also have a pristine balance sheet. Which is nice. It’s just…paper, really. But people seem to like it.
The Future, Such as It Is
ConocoPhillips is betting on liquefied natural gas. Three projects. Coming online by 2028. They also have the Willow project in Alaska. Another $4 billion in free cash flow by 2029. That’s $7 billion. Assuming oil stays around $70. Which is a big assumption, of course. They want to lower their breakeven point. To the low $30s. By 2029. They also want to grow their dividend. To be in the top 25% of S&P 500 companies. Ambitious.
EOG Resources expects to grow production. Mid-single digits. Over the next three years. They think they can generate $18 billion in free cash flow. At $73 a barrel. That’s up from $15 billion. A 6% compound annual growth rate. More fuel for the dividend machine.
The Bottom Line (If There Is One)
Both companies are decent. Low breakeven points. Growth prospects. But ConocoPhillips expects to grow faster. They can more than double their free cash flow by 2029. EOG Resources? Mid-single digits. That means ConocoPhillips can grow its dividend faster. It’s a simple equation, really. More cash flow, more dividends. So, if you’re looking for a little something extra to cushion the blow of existence, ConocoPhillips is the better bet. But remember. It’s all just borrowed time. So it goes.
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2026-03-24 16:34