ConocoPhillips (NYSE: COP) today announced an increase in its
quarterly dividend from $0.73 per share to $0.74 per share, payable
on Sept. 1, 2015 to stockholders of record at the close of business
on July 27, 2015.
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View the full release here:
http://www.businesswire.com/news/home/20150716006471/en/
Ryan Lance, ConocoPhillips Chairman and
Chief Executive Officer (Photo: Business Wire)
"A compelling dividend is a key aspect of our value proposition
to shareholders," commented Ryan Lance, chairman and CEO. “While
this increase is more modest than in previous years, we believe it
is appropriate given the lower commodity price environment."
The company also announced that it intends to reduce future
deepwater exploration spending, with the most significant
reductions coming from the operated Gulf of Mexico program.
"Since the start of the oil and gas price downturn last year, we
have moved decisively to position ConocoPhillips for lower, more
volatile prices by exercising capital flexibility and reducing
operating costs across our business," said Lance. "Our decision to
reduce spending in deepwater will further increase our capital
flexibility and reduce expenses without impacting our growth
targets. This strengthens our ability to achieve cash flow
neutrality in 2017 even if lower commodity prices persist.
"We have achieved some notable success in our deepwater program,
particularly in the Gulf of Mexico Lower Tertiary play and offshore
Senegal," Lance commented. "We are committed to delivering the
value we have created from these discoveries, while reducing the
number of deepwater exploratory prospects we drill in the
future."
In conjunction with its stated plan to reduce future capital
expenditures in deepwater exploration, the company has provided
notice that it will terminate its contract for the Ensco DS-9
deepwater drill ship. The DS-9 was scheduled for delivery to the
Gulf of Mexico in late 2015 to begin drilling the company’s
operated deepwater inventory on a three-year contract. Under the
terms of the contract, the company is subject to a termination fee
that represents up to two years of contract day rates. Details of
the termination are under discussion, but the company expects to
take a special item charge for termination in the third
quarter.
Lance further noted, "Our actions reflect a decision to reduce
exposure to programs with greater resource risk and longer cycle
times. However, we will continue to pursue organic growth through
more focused exploration programs. Furthermore, with increased
capital flexibility, we can direct more investment to our captured
resource base of 44 billion barrels of oil equivalent, which
includes significant identified inventory in the highest value
areas of the Eagle Ford, Bakken, Permian and Western Canada
unconventional plays, as well as our legacy businesses around the
world. We believe this will accelerate value for shareholders by
shortening the cycle time on our overall investment program."
The company will discuss this announcement in more detail during
the second-quarter 2015 earnings conference call scheduled for
12:00 EDT on July 30, 2015.
--- # # # ---
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, $31 billion in annualized revenue, $110 billion of total
assets, and approximately 18,800 employees as of March 31, 2015.
Production, excluding Libya, averaged 1,610 MBOED for the three
months ended March 31, 2015, 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
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20150716006471/en/
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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