Houston, May 11, 2011 --- ConocoPhillips [NYSE:COP] is making significant progress on its plan to deliver long-term value, the company said today at its Annual Meeting of Shareholders. ConocoPhillips initiated its multi-year returns-enhancement plan in 2010, designed to increase distributions to shareholders, refocus the company’s portfolio and renew the company’s commitment to strategic, financial and operational discipline.
"Our performance has delivered significant value to our shareholders, and our 2010 total shareholder return of 39 percent was the highest among our industry peer group," said Jim Mulva, chairman and chief executive officer. "We have continued our commitment to increase shareholder distributions in 2011, announcing a 20 percent increase in the quarterly dividend rate and an additional $10 billion share repurchase program."
Over the next two years, ConocoPhillips plans to execute a $28 billion capital program, almost 90 percent of which has been allocated to Exploration and Production, supporting the company’s greater-than-100-percent reserve replacement target. During this timeframe, the company plans to sell an additional $5-10 billion of non-core assets. ConocoPhillips continues to increase spending on maintenance and safety.
Further expanding on the outlook for the company, Mulva expressed concerns about the challenging political environment facing the energy industry, in particular, the potential impacts of increased regulatory burdens and proposed tax increases.
"These unprecedented proposed taxes, targeted at only five companies, would have serious effects on our company. We already have the highest effective tax rate among companies in the United States and these proposals unfairly single us out for additional taxes," said Mulva. "Not only would increased taxes cost jobs, raise consumer prices and shrink government revenue, but they would also hamper our ability to remain competitive and reinvest in jobs, new energy technologies and resources in the United States and internationally."
Mulva will testify in Washington, D.C. before the Senate Finance Committee on May 12, 2011.
Final voting results will be reported on Form 8-K, which will be filed with the Securities and Exchange Commission. These results and other information, including presentation materials and a recorded webcast of the meeting, will also be available at www.conocophillips.com/investor.
ConocoPhillips is an integrated energy company with interests around the world. Headquartered in Houston, the company had approximately 29,600 employees, $160 billion of assets, and $226 billion of annualized revenues as of March 31, 2011. For more information, go to www.conocophillips.com.
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Nancy Turner (media)
Clayton Reasor (investors)
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This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. 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, crude oil and natural gas prices; refining and marketing margins; potential failure to achieve, and potential delays in achieving expected reserves or production levels from existing and future oil and gas development projects due to operating hazards, drilling risks, and the inherent uncertainties in interpreting engineering data relating to underground accumulations of oil and gas; unsuccessful exploratory drilling activities; lack of exploration success; potential disruption or unexpected technical difficulties in developing new products and manufacturing processes; potential failure of new products to achieve acceptance in the market; unexpected cost increases or technical difficulties in constructing or modifying company manufacturing or refining facilities; unexpected difficulties in manufacturing, transporting or refining synthetic crude oil; international monetary conditions and exchange controls; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation; general domestic and international economic and political conditions, as well as changes in tax 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 (SEC). 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.