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ConocoPhillips Unveils '15???'17 Capital Budget & Growth Plan - Analyst Blog

ConocoPhillipsCOP announced its capital budget and growth outlook for 2015-2017.

The plan for 2015-2017 will be analyzed in detail at the company's upcoming Analyst and Investor Meeting on Apr 8. At the meeting several important issues will be dealt with as elaborated below.

One of the key topics of discussion will be about reiterating a compelling dividend and cash flow neutrality in 2017 and beyond as priorities of the company.

There will also be talks regarding the company's proposal of a new three-year investment plan to cut its annual capital expenditures to about $11.5 billion from $16 billion as planned earlier. Per the revised plan, the company anticipates development drilling program spending to rise as major project spending continues to drop.

In 2015 ConocoPhillips aims for a volume growth of 2-3% and expects it to rise to 1.7 million barrels of oil equivalent per day in 2017. Production from Libya, however, is excluded from the company's growth outlook. These too will be discussed at the meeting.

Other topics to be covered consist of a synopsis of the company's financial priorities, regional investment programs and projects, details on technology and cost initiatives, as well as an appraisal of the company's substantial resource base as a source of profitable growth beyond 2017.

ConocoPhillips' management asserted that it has delivered its objectives for the last three years against a backdrop of moderately high commodity prices.

However, as commodity prices dropped in late 2014, the company decided to alter its 2015 spending. This allowed ConocoPhillips to adjust its spending portfolio properly and be ready to combat lower, more volatile prices in the foreseeable future. The steps undertaken are likely to position the company for long-term success in any price environment going forward.

ConocoPhillips currently carries a Zacks Rank #3 (Hold). Better-ranked stocks from the oil and gas sector include Valero Energy Partners L.P. VLP , Western Gas Equity Partners, L.P WGP and Hallador Energy Company HNRG . Each of these stocks sports a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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