COP - ConocoPhillips Fumbles The Ball On The 1-Yard Line

• Over the past few years, ConocoPhillips has done a great job at upgrading the portfolio, cutting costs, and generating tons of free cash flow.
• Indeed, in Q2, the company generated $2.8 billion in additional FCF and ended the quarter with a massive cash hoard of $9.2 billion in cash and cash equivalents.
• Yet, after a one-penny increase in the quarterly dividend last year, the annual dividend remains an unimpressive $1.72/share.
• Bank of America analyst Doug Leggate called out CEO Ryan Lance on the dividend issue, but it is clear from Lance's answer that shareholders can't expect a decent dividend anytime soon.
• It's the equivalent of a football team driving the ball the entire length of the field with hard-fought running and passing plays, only to fumble the ball on the one-yard line.

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