ConocoPhillips outlined its financial priorities and investment plans at an analyst and investors meeting.
“The energy landscape has changed dramatically as a result of the recent decline in commodity prices, but we responded quickly to position the company as a core energy holding in a lower, more volatile price environment,” said Ryan Lance, chairman and chief executive officer.
The company confirmed its priorities of a compelling dividend and achieving cash flow neutrality in 2017 and beyond.
It’s also looking to reduce operating costs by $1 billion by year-end 2016. Reductions will come primarily from lower lifting costs, improvements and standardization of processes, and lower general and administrative costs.
ConocoPhillips detailed a three-year investment plan with annual capital expenditures of approximately $11.5 billion.
The company plans to expand its capital investments in development programs mostly in North American unconventionals.
Plans for volume growth, which is expected to be two to three per cent in 2015 and increase to 1.7 million barrels of oil equivalent per day in 2017.
“We believe we are uniquely positioned to execute a viable, prudent plan that delivers on our commitments to shareholders,” said Lance.
More information including presentation materials and a webcast replay of the meeting is available here.
