ConocoPhillips today announced its 2015 to 2017 capital budget and growth outlook, in which its says the oil prices will remain unstable. The company will thus reduce its three year spending plan from $16 billion per year to $11.5 billion.
“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.”
Details of the 2015 to 2017 plan will be reviewed at the company’s upcoming Analyst and Investor Meeting on April 8, 2015. Key highlights at the meeting will include:
“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.”