ConocoPhillips Continues Focus on Creating Value
New York, March 23, 2011 --- ConocoPhillips [NYSE:COP] provided new information regarding sources of future reserves and production growth during its annual presentation to the financial community today in New York. In addition, the company announced plans to sell an additional $5-10 billion of non-core assets over the next two years. ConocoPhillips initiated its multi year returns-enhancement plan in 2010, designed to improve capital efficiency, reduce debt and increase shareholder distributions. Proceeds from the increased asset sales are expected to be used primarily to fund the company's recently announced $10 billion share repurchase program and for capital investment opportunities.
"We are executing the plan set out last year to improve returns and create value through disciplined capital spending, non-core asset sales and growing production per share," said Jim Mulva, chairman and chief executive officer. "Our unique approach prioritizes value creation over low margin production growth and is designed to position the company for higher returns and increased shareholder distributions in the future."
Almost 90 percent of ConocoPhillips' $13.5 billion 2011 capital program has been allocated to its Exploration and Production (E&P) segment. OECD-focused reserves and production growth is expected from the development of major international projects, unconventional liquids and SAGD resources in North America, and from expansion of the company's exploration portfolio. E&P's 2011 capital program of $12.0 billion supports the company's greater-than-100-percent reserve replacement target. ConocoPhillips also plans increased investment in developing and integrating new technology into the company's projects and exploration activities over the next five years.
ConocoPhillips' Refining and Marketing sector will continue to emphasize improving returns on capital through optimization of the supply chain, improved capture of market opportunities, and reduction of the level of capital employed in the business through asset dispositions and a highly disciplined approach to future capital investment.
"We are confident that the execution of our plan uniquely positions ConocoPhillips for long-term value creation," said Mulva. "We think our focus on capital discipline and increasing shareholder distributions is the most appropriate approach for our company."
More information, including presentation materials and a recorded webcast of the meeting, is available at www.conocophillips.com/investor.
ConocoPhillips is an integrated energy company with interests around the world. Headquartered in Houston, the company had approximately 29,700 employees, $156 billion of assets, and $189 billion of revenues as of December 31, 2010. For more information, go to www.conocophillips.com.
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This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Forward-looking statements relate to future events and anticipated results of operations, business strategies, and other aspects of our operations or operating results. In many cases you can identify forward-looking statements by terminology such as "anticipate," "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target" and other similar words. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, there can be no assurance that such expectation or belief will result or be achieved. The actual results of operations can and will be affected by a variety of risks and other matters including, but not limited to, crude oil and natural gas prices; refining and marketing margins; potential failure to achieve, and potential delays in achieving expected reserves or production levels from existing and future oil and gas development projects due to operating hazards, drilling risks, and the inherent uncertainties in interpreting engineering data relating to underground accumulations of oil and gas; unsuccessful exploratory drilling activities; lack of exploration success; potential disruption or unexpected technical difficulties in developing new products and manufacturing processes; potential failure of new products to achieve acceptance in the market; unexpected cost increases or technical difficulties in constructing or modifying company manufacturing or refining facilities; unexpected difficulties in manufacturing, transporting or refining synthetic crude oil; international monetary conditions and exchange controls; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation; general domestic and international economic and political conditions, as well as changes in tax and other laws applicable to our business. Other factors that could cause actual results to differ materially from those described in the forward-looking statements include other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission (SEC). Unless legally required, ConocoPhillips undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.