|
The spending forecast, an increase from 2017 levels and higher
than many Wall Street analysts had expected, comes as Conoco,
like some peers, focuses more on generating profits than on
boosting production at any cost.
Much of that discipline is aided by better technology and more
efficient processes that help the company pump more for less.
The company expects production to grow 5 percent each year for
the rest of the decade.
Executive said they should be able to send more than 30 percent
of cash flow back to shareholders in the form of dividends and
share buybacks by 2020.
"We want to be the company that can attract and retain capital
to this sector by offering superior returns to shareholders
through cycles," Chief Executive Officer Ryan Lance said in a
statement.
Houston-based ConocoPhillips also said it expects to pay off
more than $4.6 billion of debt by 2020, reducing its debt load
to $15 billion. Continuing a theme of focusing on profits and
not production, ConocoPhillips expects to generate a 20 percent
cash return on capital employed by the end of the decade.
Executives plan to hold a meeting with investors on Wednesday
morning in New York to discuss the capital plan in detail.
Shares of Conoco have gained about 7 percent so far this year,
closing Tuesday at $53.48. West Texas Intermediate futures
dipped 0.3 percent to $57.04.
(Reporting by Ernest Scheyder; Editing by Chizu Nomiyama and
Jeffrey Benkoe)
[© 2017 Thomson Reuters. All rights
reserved.] Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
