Houston-based energy giant and LNG player ConocoPhillips has set a plan to average annual capital expenditures of $5.5 billion, based on a price of $50 per barrel, for the 2018-2020 period.
The company further targets less than $40-per barrel average sustaining price over the period, leading to a debt reduction to $15 million in 2019.
ConocoPhillips further targets improvement in financial returns driven by disciplined investments in the company’s resource base of 15 billion barrels of oil equivalent with an average cost of supply of less than $35 per barrel.
Over the next three year, ConocoPhillips, expects to add around 175 mmboed of new production.
The company also said that consistent with its ongoing commitment to sustainability, it has set a target to reduce greenhouse gas emissions intensity by 5 to 15 percent by 2030.
Speaking of the year 2017 so far, Ryan Lance, the company’s chairman and CEO, said, “through accretive asset sales and an ongoing focus on capital and cost efficiency, we’ve lowered the capital intensity and sustaining price of the company, reduced the cost of supply of our investment portfolio, substantially strengthened our balance sheet.”
He said the company is well positioned to generate free cash flow and improve financial returns.