Conocophillips Company has set a 2021 operating plan capital budget of $5.5 billion. Conocophillips Company expected to maintain flat production as compared to 2020 pro forma production of approximately 1.5 million BOED.
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Conocophillips operating plan capital budget of $5.5 billion is expected to maintain flat production as compared to 2020 pro forma production of approximately 1.5 million BOED. 2020 pro forma production assumes Concho reported production for the nine months ended Sep. 30, 2020 and ConocoPhillips full year production adjusted for Libya, closed dispositions and impact from curtailments.
Lance commented, “While the industry fundamentals have strengthened off the 2020 lows, Conocophillips believe setting a sustaining capital program for 2021 is the right approach for our company. It clearly demonstrates our commitment to free cash flow generation and creates flexibility to return additional capital to shareholders at higher prices. Most importantly, the closing of the Concho transaction clears the way for us to begin comprehensive integration and optimization efforts across every part of our business. It’s early days postclosing, but our organization is working diligently to ensure we emerge from the integration as the strongest competitor in the business. We have already sourced the capital and cost reductions we announced at the time of the deal and now see a path to outperforming those expectations.”
Lance continued, “To put Conocophillips current expectations into perspective, in 2019 the two companies’ combined pro forma 2019 adjusted operating costs were approximately $7 billion. We anticipate entering 2022 at an annual
adjusted operating cost run rate of approximately $6 billion. Of this $1 billion reduction, approximately $0.4 billion was driven by actions taken by both companies prior to the deal announcement, with the remaining to be
realized through cost reductions to be implemented in conjunction with the transaction. When combined, the $1billion in lower annual expenses represents a major value upgrade for the new company and greatly enhances
the competitiveness of our free cash flow generation capability. This is even more powerful considering that the 2022 run rate assumes roughly the same production level as 2019. We look forward to providing additional detail and periodic updates on the progress of these efforts during the coming months.”
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About Conocophillips
ConocoPhillips is a multinational corporation engaged in hydrocarbon exploration. It is based in the Energy Corridor district of Houston, Texas. The company has operations in 17 countries and has production in the United States, Norway, Canada, Australia, Timor-Leste, Indonesia, Malaysia, Libya, China, and Qatar.
ConocoPhillips North American Plays
Eagle Ford in Texas is the most mature tight oil play in the Lower 48 current, oil and natural gas production of 2.5 million barrels of oil equivalent per day. Measuring 400 miles long and 50 miles wide along the Texas Gulf Coast, the Eagle Ford basin is spread over 12,000 square miles in South and central Texas.
Delaware Basin is a hydrocarbon rich sedimentary basin that lies within the Permian Basin. The Delaware Basin covers around 6.4 million acres in far West Texas and South Eastern New Mexico. It is located in an arid southwestern portion of the United States of America
Montney Formation is a major shale gas and tight oil resource. … This estimate makes it one of the largest known gas resources in the world and equivalent to 145 years of Canada’s 2012 consumption. Gas is produced from the Montney Formation in both British Columbia and Alberta.
