U.S. oil major ConocoPhillips on Wednesday cut its capital budget for 2010 and said it planned to divest $10 billion in assets in a bid to improve its financial position.

The company, based in Houston, said it expected to spend about $11 billion in 2010, down from $12.5 billion in 2009.

Conoco said it would sell about $10 billion of its refining and exploration and production assets, with proceeds targeted for debt reduction.

The company also said it had raised its quarterly dividend 6 percent to 50 cents per share.

Shares of Conoco rose 1.2 percent to $49.01 in midday New York Stock Exchange trading.

(Reporting by Anna Driver; Editing by Lisa Von Ahn)