ConocoPhillips Outlines Investment Plans, Financial Priorities and Significant Resource Base at Analyst and Investor Meeting
April 08 2015 - 10:49AM
Business Wire
ConocoPhillips (NYSE: COP) today provided details of its
financial priorities and operating plan at its Analyst and Investor
Meeting in New York. Members of the company’s executive leadership
team discussed ConocoPhillips’ goal to offer attractive annual
returns to shareholders through a compelling dividend, predictable
growth and a priority on margins and financial returns.
“The energy landscape has changed dramatically as a result of
the recent decline in commodity prices, but we responded quickly to
position the company as a core energy holding in a lower, more
volatile price environment,” said Ryan Lance, chairman and chief
executive officer. “We have a diverse, world-class portfolio that
provides increasing capital flexibility as our major projects start
to come online. We also have a strong balance sheet with the
financial flexibility to respond to changes in the price
environment.”
Key highlights from the meeting included:
- Confirmation of the company’s
priorities of a compelling dividend and cash flow neutrality in
2017 and beyond.
- Cost improvement goal to reduce
operating costs by $1 billion by year-end 2016 compared with 2014.
Reductions will come primarily from lower lifting costs,
improvements and standardization of processes, and lower general
and administrative costs.
- Details on a three-year investment plan
with annual capital expenditures of approximately $11.5 billion.
Under this plan the company expects to increase capital to
development programs, primarily in the North American
unconventionals, by approximately 50 percent as major project
spending declines by approximately 45 percent.
- Plans for volume growth, which is
expected to be 2 to 3 percent in 2015 and increase to 1.7 million
barrels of oil equivalent per day in 2017. Production from the
company’s Asia Pacific and Middle East, Canada and Lower 48
segments is expected to increase over this period, while production
from the Alaska and Europe segments is expected to remain
relatively flat. The company’s growth outlook excludes production
from Libya.
- Details on the company’s captured
resource base of 44 billion barrels of oil equivalent, which are
primarily low cost of supply resources in OECD countries. These
resources provide a diverse source of long-term growth
opportunities.
“We believe we are uniquely positioned to execute a viable,
prudent plan that delivers on our commitments to shareholders,”
said Lance. “The dividend remains our top priority and we will
continue to exercise our capital flexibility and financial strength
to achieve cash flow neutrality in 2017. We have successfully
delivered on our commitments to shareholders over the past three
years and we remain committed to continuing that track record of
success.”
The company will also provide an update on first-quarter 2015
financial and operating results during a conference call webcast on
Thursday, April 30, 2015 at 12:00 p.m. EDT. The company’s
first-quarter earnings will be released before the market opens on
April 30. A live webcast of the meeting will be made available on
the ConocoPhillips Investor Relations site,
www.conocophillips.com/investor.
More information, including presentation materials and a webcast
replay of the meeting, is available at
www.conocophillips.com/investor.
--- # # # ---
About ConocoPhillips
ConocoPhillips is the world’s largest independent E&P
company based on production and proved reserves. Headquartered in
Houston, Texas, ConocoPhillips had operations and activities in 27
countries, $53 billion in annual revenue, $117 billion of total
assets, and approximately 19,100 employees as of Dec. 31, 2014.
Production from continuing operations, excluding Libya, averaged
1,532 MBOED in 2014 and proved reserves were 8.9 billion BOE as of
Dec. 31, 2014. For more information, go to
www.conocophillips.com.
CAUTIONARY STATEMENT FOR THE PURPOSES
OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements.
Forward-looking statements relate to future events and anticipated
results of operations, business strategies, and other aspects of
our operations or operating results. In many cases you can identify
forward-looking statements by terminology such as "anticipate,"
"estimate," "believe," "continue," "could," "intend," "may,"
"plan," "potential," "predict," "should," "will," "expect,"
"objective," "projection," "forecast," "goal," "guidance,"
"outlook," "effort," "target" and other similar words. However, the
absence of these words does not mean that the statements are not
forward-looking. Where, in any forward-looking statement, the
company expresses an expectation or belief as to future results,
such expectation or belief is expressed in good faith and believed
to have a reasonable basis. However, there can be no assurance that
such expectation or belief will result or be achieved. The actual
results of operations can and will be affected by a variety of
risks and other matters including, but not limited to, changes in
commodity prices; changes in expected levels of oil and gas
reserves or production; operating hazards, drilling risks,
unsuccessful exploratory activities; difficulties in developing new
products and manufacturing processes; unexpected cost increases;
international monetary conditions; potential liability for remedial
actions under existing or future environmental regulations;
potential liability resulting from pending or future litigation;
limited access to capital or significantly higher cost of capital
related to illiquidity or uncertainty in the domestic or
international financial markets; and general domestic and
international economic and political conditions; as well as changes
in tax, environmental and other laws applicable to our business.
Other factors that could cause actual results to differ materially
from those described in the forward-looking statements include
other economic, business, competitive and/or regulatory factors
affecting our business generally as set forth in our filings with
the Securities and Exchange Commission. Unless legally required,
ConocoPhillips undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Cautionary Note to U.S. Investors – The SEC permits oil and gas
companies, in their filings with the SEC, to disclose only proved,
probable and possible reserves. We use the term "resource" in this
news release that the SEC’s guidelines prohibit us from including
in filings with the SEC. U.S. investors are urged to consider
closely the oil and gas disclosures in our Form 10-K and other
reports and filings with the SEC. Copies are available from the SEC
and from the ConocoPhillips website.
ConocoPhillipsDaren Beaudo, 281-293-2073
(media)daren.beaudo@conocophillips.comorSidney J. Bassett,
281-293-5000 (investors)sid.bassett@conocophillips.comorVladimir R.
dela Cruz, 281-293-5000
(investors)v.r.delacruz@conocophillips.com
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