ConocoPhillips (NYSE: COP) will reduce future spending on deepwater drilling due to low crude oil prices while raising its dividend one cent, the company said July 16.

The largest spending reductions will come in the Gulf of Mexico, where Houston-based ConocoPhillips said it will terminate a three-year contract for an Ensco deepwater drillship that was due to be delivered late this year.

ConocoPhillips said it raised its quarterly dividend to 74 cents per share from 73 cents per share.