| ConocoPhillips to a Sustain a Capex of $11.5B for 3 Years - Analyst Blog | |
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ConocoPhillips COP is expected to maintain its capital expenditure for the next three years.
Earlier this year, the company had lowered its spending forecast for 2015, owing to falling oil prices. In January, the largest independent U.S. energy company had announced that it has lowered its 2015 capital budget to $11.5 billion, down $2 billion from the previous capital budget amount. Per management, ConocoPhillips intends to maintain its capex at the current level for the next three years, irrespective of oil prices moving up.
Crude prices have decreased more than 50% since Jun 2014 when it was $115 a barrel. This was mainly due to an increase in global supplies and a decrease in demand due to the economic slowdown in booming nations like China.
Similar to other exploration and production companies, ConocoPhillips had decreased its capital spending. The company is also cutting down on its rig count for fields in the lower 48 U.S. states to combat the volatility in commodity prices.
Production in the company’s shale fields is projected to drop in the third and fourth quarters. This includes the production from the Permian in West Texas and the Bakken in North Dakota. In spite of a fall in output from these fields, total production is estimated to increase by 2–3% in 2015.
The company also plans to spend less on major projects, several of which are on the verge of completion. ConocoPhillips is also seeking to divest non-core oil and gas producing acreage in the U.S. to cope with the current scenario of dropping oil prices.
ConocoPhillips is a major global exploration and production (“E&P”) company with operations and activities in 30 countries that include the U.S., Canada, the U.K./Norway, China, Australia, offshore Timor-Leste, Indonesia, Libya, Nigeria, Algeria, Russia and Qatar.
ConocoPhillips currently carries a Zacks Rank #3 (Hold). Better-ranked players from the same space include Transmontaigne Partners L.P. TLP, CNOOC Ltd. CEO and Pembina Pipeline Corporation PBA. All these stocks sport a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TRANSMONTN PTNR (TLP): Free Stock Analysis Report CNOOC LTD ADR (CEO): Free Stock Analysis Report CONOCOPHILLIPS (COP): Free Stock Analysis Report PEMBINA PIPELN (PBA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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ConocoPhillips
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CODE : COP |
ISIN : US20825C1045 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
ConocoPhillips is a producing company based in United states of america. ConocoPhillips is listed in Germany and in United States of America. Its market capitalisation is US$ 149.8 billions as of today (€ 131.2 billions). Its stock quote reached its lowest recent point on December 31, 1991 at US$ 10.94, and its highest recent level on March 28, 2024 at US$ 127.28. ConocoPhillips has 1 177 107 000 shares outstanding. |