ConocoPhillips At Analyst & Investor Day Reaffirms 10-Year Plan Including $50B Of Free Cash Flow Over The Decade

ConocoPhillips (NYSE:COP) is hosting an Analyst & Investor Meeting today to reaffirm its commitment to the disciplined, returns-focused strategy it launched in 2016. The company will outline the details of a

Benzinga · 11/19/2019 13:51

ConocoPhillips (NYSE:COP) is hosting an Analyst & Investor Meeting today to reaffirm its commitment to the disciplined, returns-focused strategy it launched in 2016. The company will outline the details of a 2020-2029 operating and financial plan, and will provide region and asset reviews of its global portfolio.

Highlights of the 10-year plan include:

  • Free cash flow of approximately $50 billion based on a real West Texas Intermediate price of $50 per barrel and annual capital expenditures averaging less than $7 billion over the decade;
  • A capital expenditures plan that reflects optimized pace of development within each asset, low capital intensity and overall low-declining base production;
  • Currently announced and planned dispositions, as well as a future 25 percent dilution of company-operated Alaska assets consistent with the company’s historical practice of not funding major-project expenditures at 100 percent;
  • Resource base of approximately 15 billion barrels of oil equivalent at less than $40 per barrel WTI average cost of supply;
  • Forecast underlying compound annual production growth averaging over 3 percent;
  • Projected ordinary dividends of approximately $20 billion, reflecting growth in the current dividend over the plan period;
  • Projected $30 billion in share buybacks over the 10-year period, representing almost 50 percent of current market capitalization;
  • Planned dividends and repurchases funded from free cash flow over life of the plan, representing a combined annual shareholder payout that exceeds our distribution target of more than 30 percent of cash from operations;
  • Expected growth in return on capital employed of 1 to 2 percentage points annually; and
  • Continued balance sheet strength with an expected leverage ratio of net debt to cash from operations of less than one.