ConocoPhillips Plans for $6.1B Capital Spend in 2019
ConocoPhillips plans to keep its capital expenditures flat at $6.1 billion in 2019, the Houston-based E&P company announced Monday.
The Lower 48 is expected to account for about half of the CAPEX budget at $3.1 billion, with a focus on 10-11 rigs in the Eagle Ford, Bakken and Delaware unconventional plays. Additionally, ConocoPhillips plans to use a portion of the Lower 48 budget on exploration and appraisal activity in the Louisiana Austin Chalk play and conventional drilling in the region.
“As we head into 2019, we plan to keep capital flat, increase our payout target and deliver high-margin production per-share growth,” Ryan Lance, ConocoPhillips CEO said in a release.
The company also plans to up production to between 1.3 and 1.35 million barrels of oil equivalent per day.
“We no longer think of our value proposition as merely disciplined, we view it as the new order. We are running our business for sustained through-cycle financial returns, which is necessary for attracting investors back to the E&P sector,” said Lance. We believe we have designed ConocoPhillips to offer investors both resilience to lower prices and participation in higher prices via an approach that rations capital across a low cost of supply portfolio, competes on per-share versus absolute growth, and pays out a significant portion of cash from the business to shareholders.”
Other region’s budget allocations are as follows:
- Alaska - $1.2 billion, or about 20 percent
- Canada - $500 million, or about 8 percent
- Europe and North Africa - $700 million, or about 11 percent
- Asia Pacific and Middle East - $500 million, or about 8 percent
- Other - $1 million, or about 2 percent
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