News from todays analyst meeting with COP management:
ConocoPhillips Outlines Plans for Growth and Returns at Analyst Meeting
NEW YORK--(BUSINESS WIRE)--
ConocoPhillips (COP) today reaffirmed its objective to deliver double-digit returns annually to shareholders at its Analyst Meeting held at the New York Stock Exchange. Members of the company’s executive leadership team outlined ConocoPhillips’ goal to consistently deliver 3 to 5 percent compound annual growth in production and margins, with a compelling dividend, from a diversified, high-quality portfolio.
“ConocoPhillips is set for growth,” said Chairman and Chief Executive Officer Ryan Lance. “Beginning this year, we will be growing production and margins across our diverse asset base, and allocating 95 percent of our annual capital expenditures to growth projects and programs with margins that are higher than our average margin today. We believe we have the asset base, technical capability, world-class workforce and financial strength to deliver on our unique value proposition.”
If you read the article, it clearly talks about reinvesting the dividend and it therefore "compounds." And yes, this is over a long period of time. The "secret" is nothing more than the concept of how that value increases because of compounding interest over time.