HOUSTON – ConocoPhillips (NYSE: COP) today announced its 2015 to 2017 capital budget and growth outlook. Details of the 2015 to 2017 plan will be reviewed at the company’s upcoming Analyst and Investor Meeting on April 8, 2015.
“For the past three years, ConocoPhillips has consistently delivered our stated objectives against a backdrop of relatively high, stable commodity prices,” said Ryan Lance, chairman and chief executive officer. “As commodity prices declined in late 2014, we took decisive action to adjust our 2015 spending. We now believe it is prudent to position the company for lower, more volatile prices for the foreseeable future. Our new plan will continue to focus on delivering a compelling dividend, while also achieving sustainable, modest volume growth and competitive returns. We strongly believe this is an attractive formula for shareholders and we look forward to sharing the details of our plans.”
Key highlights at the meeting will include:
- Reaffirmation of the company’s priorities of a compelling dividend and cash flow neutrality in 2017 and beyond.
- Details on a three-year investment plan that reduces annual capital expenditures to approximately $11.5 billion, versus the company’s previous plan of approximately $16 billion of annual capital expenditures. Under this revised plan the company expects development drilling program spending to increase as major project spending continues to decline.
- Plans for volume growth, which is expected to be 2 to 3 percent in 2015 and increase to 1.7 MMBOED in 2017. The company’s growth outlook excludes production from Libya.
Additional meeting topics will include an overview of the company’s financial priorities, regional investment programs and projects, details on technology and cost initiatives, and a review of the company’s significant resource base as a source of profitable growth beyond 2017.
“We’re taking this period of commodity price weakness to position ConocoPhillips for long-term success in any price environment,” said Lance. “Our updated plan is more resilient to lower prices, yet allows us to benefit from periods of higher commodity prices. The flexibility of our investment portfolio, our technical capability and our financial strength give us an advantage that we are seizing. We’ve delivered for the past three years and we are committed to continuing our track record of success under this disciplined plan.”
The company will hold its 2015 Analyst and Investor Meeting on Wednesday, April 8, 2015 at 9:00 a.m. EDT in New York City. A live webcast of the meeting will be made available on the ConocoPhillips Investor Relations site, www.conocophillips.com/investor. The event will be archived and available for replay later that day.
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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.
Daren Beaudo (media)
Sidney J. Bassett (investors)
Vladimir R. dela Cruz (investors)
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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.