New York, March 23, 2011 --- ConocoPhillips [NYSE:COP] provided new information regarding sources of future reserves and production growth during its annual presentation to the financial community today in New York. In addition, the company announced plans to sell an additional $5-10 billion of non-core assets over the next two years. ConocoPhillips initiated its multi year returns-enhancement plan in 2010, designed to improve capital efficiency, reduce debt and increase shareholder distributions. Proceeds from the increased asset sales are expected to be used primarily to fund the company’s recently announced $10 billion share repurchase program and for capital investment opportunities.
“We are executing the plan set out last year to improve returns and create value through disciplined capital spending, non-core asset sales and growing production per share,” said Jim Mulva, chairman and chief executive officer. “Our unique approach prioritizes value creation over low margin production growth and is designed to position the company for higher returns and increased shareholder distributions in the future.”
Almost 90 percent of ConocoPhillips’ $13.5 billion 2011 capital program has been allocated to its Exploration and Production (E&P) segment. OECD-focused reserves and production growth is expected from the development of major international projects, unconventional liquids and SAGD resources in North America, and from expansion of the company’s exploration portfolio. E&P's 2011 capital program of $12.0 billion supports the company’s greater-than-100-percent reserve replacement target. ConocoPhillips also plans increased investment in developing and integrating new technology into the company’s projects and exploration activities over the next five years.
ConocoPhillips’ Refining and Marketing sector will continue to emphasize improving returns on capital through optimization of the supply chain, improved capture of market opportunities, and reduction of the level of capital employed in the business through asset dispositions and a highly disciplined approach to future capital investment.
“We are confident that the execution of our plan uniquely positions ConocoPhillips for long-term value creation,” said Mulva. “We think our focus on capital discipline and increasing shareholder distributions is the most appropriate approach for our company.”
More information, including presentation materials and a recorded webcast of the meeting, is available at www.conocophillips.com/investor.
ConocoPhillips is an integrated energy company with interests around the world. Headquartered in Houston, the company had approximately 29,700 employees, $156 billion of assets, and $189 billion of revenues as of December 31, 2010. For more information, go to www.conocophillips.com.
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