) at its analyst meeting held in New York City reiterated its
target of delivering double-digit returns annually to
shareholders by growing production and margins by 3% to 5% a year
and offering a compelling dividend.
Since Apr 2012, when the company spun off its refining operations
), it has generated total shareholder returns of 22.6%. The
company also augmented its total resource base in its Eagle Ford
acreage to 2.5 billion barrels from 1.8 billion barrels. The
number represents original oil in place and not recoverable
barrels of proved reserves. ConocoPhillips also intends to boost
production in the Eagle Ford play to 250,000 barrels of oil
equivalent a day by 2017.
Over the next several years, ConocoPhillips proposes to enhance
its annual capital spending to $16 billion. The amount signifies
a boost of 60% in the amount it commits for development so that
the company can attain its reserve replacement goal of over 100%
About 95% of ConocoPhillips' spending will be aimed at areas that
deliver a minimum margin of $30 per barrel of oil equivalent. Of
the annual capex budget of $16 billion, $5.5 billion will be
allocated for North American unconventional plays, including the
Eagle Ford, Bakken, Permian Basin and Niobrara plays.
ConocoPhillips has added 6.7 billion barrels of oil equivalent of
resources since 2009 through a diverse and balanced exploration
and appraisal portfolio of high-value prospects. The four large
U.S. Gulf of Mexico discoveries - Tiber, Gila, Shenandoah and
Coronado - are considered to be among the high-quality prospects.
The recent activity aims offshore prospects in Australia Angola
and Senegal, conventional exploration in Norway and Indonesia and
unconventional exploration in North America, Poland and Colombia.
ConocoPhillips carries a Zacks Rank #3 (Hold). Better-ranked
stocks in the industry include
Range Resources Corporation
Helmerich & Payne, Inc.
), both with a Zacks Rank #1 (Strong Buy).
CONOCOPHILLIPS (COP): Free Stock Analysis
HELMERICH&PAYNE (HP): Free Stock Analysis
PHILLIPS 66 (PSX): Free Stock Analysis Report
RANGE RESOURCES (RRC): Free Stock Analysis
To read this article on Zacks.com click here.