We work in a truly integrated way to find and produce oil and natural gas globally. Technical capabilities, asset quality and scale, and financial strength set us apart - we are unmatched among independent exploration and production companies.
The world’s largest independent exploration and production company.
Assets, technology and people for the new energy landscape.
A long and proud history of finding and producing oil and gas.
We explore for, produce, transport and market crude oil, natural gas, natural gas liquids, liquefied natural gas and bitumen on a worldwide basis - energy that plays a foundational role in enabling global economic development and human progress.
Using sophisticated technologies to locate resources.
Safely transporting oil and gas, connecting energy supply and demand.
Valuing relationships with suppliers and other companies.
Producing the oil and gas resources to power civilization.
Working daily to design innovative ways to find and produce oil and gas.
Sustainable Development is about conducting our business to promote economic growth, a healthy environment and vibrant communities, now and into the future.
Integrating sustainable development into our work.
Striving to work each day without injury, illness or incidents.
Addressing social and stakeholder issues.
Answering common questions.
Minimizing environmental footprint and supporting stewardship.
Measuring key performance metrics and reporting indices.
We do more than create jobs and pay taxes in the communities where we operate. We listen. Our dedication as a community partner is evidenced in the local events we sponsor. It is also apparent in the conversations held between our local community liaisons and stakeholders.
December 6, 2013
HOUSTON – ConocoPhillips (NYSE: COP) today announced a 2014 capital expenditures budget of $16.7 billion for continuing operations. Investments during 2014 will target the company’s diverse portfolio of global opportunities. Approximately 55 percent of the budget is allocated toward North America and 45 percent toward Europe, Asia Pacific and other international businesses. Highlights of the company’s 2014 investment program include:
The company also announced it is on track to achieve its previously stated 2014 annual average production target of approximately 1,600 thousand barrels per day (MBOED) from continuing operations, including 50 MBOED from Libya. The company expects to achieve growth in its Lower 48, Canada, Europe and Asia Pacific regions. Key sources of growth in 2014 include:
“2014 is an important year for ConocoPhillips,” said Ryan Lance, chairman and chief executive officer. “Since becoming an independent E&P company, we have set out to deliver a unique value proposition of 3 to 5 percent volume and margin growth with a compelling dividend. To position the company for these goals, we generated proceeds of more than $12 billion from the disposition of nonstrategic assets since the start of 2012, while investing in programs to drive future profitable growth. Today, we have an unparalleled inventory of opportunities that will enable us to deliver organic growth from continuing operations in 2014 and beyond. In addition, our planned conventional and unconventional exploration activity should provide opportunities that can keep us on track for sustained growth and returns.”
In 2013, the company anticipates utilizing a portion of its cash balance to fully prepay the $2.8 billion joint venture acquisition obligation to its 50 percent owned FCCL business venture. This obligation would have otherwise been paid with interest over the 2014 to 2017 time period.
The capital budget includes funding for base maintenance, development drilling programs, major projects, and exploration and appraisal spending, as well as corporate expenditures. The allocations to these categories are generally consistent with the company’s long-term guidance. The key categories of capital spending are as follows:
Base MaintenanceApproximately 13 percent of the capital budget is allocated for maintenance of the company’s high-quality legacy base portfolio, including 2014 planned turnarounds.
Development Drilling ProgramsApproximately 39 percent of the capital budget is allocated to the company’s high-margin development drilling programs, with approximately 90 percent targeted toward North America. Growth from these development drilling programs should account for 600 MBOED of production by 2017 and offsets normal field decline from the company’s producing assets.
Major ProjectsApproximately 35 percent of the capital budget is focused on the company’s sanctioned major growth projects globally. In line with company expectations, 2014 reflects peak spending for the APLNG project in Australia and ongoing high levels of spend at Surmont Phase 2. Sanctioned major projects are expected to account for 400 MBOED of production by 2017.
Exploration and AppraisalApproximately 13 percent of the capital budget is allocated toward the company’s exploration and appraisal program. Approximately 60 percent is allocated toward conventional exploration, with the remaining 40 percent targeting unconventional opportunities.
ConocoPhillips will provide further details on its 2014 outlook during the upcoming fourth-quarter conference call, currently scheduled for Jan. 30, 2014. Additionally, the company will provide further details on its investment programs at its annual analyst meeting on April 10, 2014 in New York, where representatives from company management will discuss the company’s strategic plans for growth and value creation.
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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 29 countries, $55 billion in annualized revenue, $120 billion of total assets, and approximately 18,000 employees as of Sept. 30, 2013. Production from continuing operations averaged 1,511 MBOED for the nine months ended Sept. 30, 2013, and proved reserves were 8.6 billion BOE as of Dec. 31, 2012. For more information, go to www.conocophillips.com.
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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.
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