ConocoPhillips announced on Monday that it aims to return 16% more capital to shareholders next year, as well as a new variable return of cash, highlighting the petroleum industry's concentration on shareholder returns overspending.

Even though crude prices are up roughly 38% this year, oil and gas companies have upped their dividends or announced share buybacks, as they keep their vows to keep output steady, a striking break from prior boom cycles.

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ConocoPhillips also expects average production of around 1.8 million barrels of oil equivalent per day in 2022, representing a low-single-digit percentage increase over 2021.

The largest independent oil producer in the United States issued the projection after making two large acquisitions in the heart of the US shale industry this year: a $9.5 billion deal to buy Royal Dutch Shell's Permian Basin assets and a $9.7 billion deal to buy Concho Resources.

ConocoPhillips said it intends to return nearly $7 billion in capital to shareholders next year, with the first variable cash distribution of 20 cents per share due on Jan. 14.

This is in addition to the $2.4 billion in ordinary dividends and $3.5 billion in share repurchases that the business plans to payout.

In addition, the company expects to spend $7.2 billion on CAPEX in 2022. As part of a 10-year plan released in September, it predicted yearly capital expenditures of $8 billion.

The corporation plans to spend $200 million on projects that will lower emissions from its direct activities as well as those from the power it consumes.

ConocoPhillips' shares jumped 1.7% to $72.34 in premarket trade, boosted by higher crude prices, which boosted oil and gas firms.