ConocoPhillips plans an average annual capital budget of $5.5 billion during 2018-20 based on a flat real West Texas Intermediate price of $50/bbl. The Houston independent also intends to reduce its debt to $15 billion in 2019.
“Through accretive asset sales and an ongoing focus on capital and cost efficiency, we’ve lowered the capital intensity and sustaining price of the company, reduced the cost of supply of our investment portfolio, substantially strengthened our balance sheet, and returned a significant portion of cash flow to our owners,” said Ryan Lance, chairman and chief executive officer.
ConocoPhillips last month reduced its 2017 capital budget for the second time, cutting another $300 million to bring it to $4.5 billion (OGJ Online, Oct. 26, 2017). The firm posted third-quarter earnings of $400 million compared with a third-quarter 2016 loss of $1 billion.
The firm also reported its intention to reduce its greenhouse gas emissions intensity by 5-15% by 2030.
