By Laura Goldberg
ConocoPhillips set its 2015 capital budget at $13.5 billion, a decrease of 20 percent over this year, the Houston oil and gas company said Monday.
That reflects lower spending on major projects, several of which are nearing completion, and deferral of spending on North American unconventional plays.
Despite the cut, the company expects to produce about 3 percent more in 2015 from continuing operations, excluding Libya.
“We are setting our 2015 capital budget at a level that we believe is prudent given the current environment,” said Ryan Lance, chairman and chief executive officer.
“This plan demonstrates our focus on cash flow neutrality and a competitive dividend, while maintaining our financial strength. We are fortunate to have significant flexibility in our capital program. Spending on several major projects has peaked and we will get the benefit of production uplift from those projects over the next few years. In addition, we identified inventory in the unconventionals, where we also retain a high degree of capital flexibility.”Read more