HOUSTON – ConocoPhillips (NYSE: COP) is hosting an Analyst & Investor Meeting today to outline details of a compelling operating and financial plan that features durable returns and cash flow growth for decades to come, while further describing the company’s valued role in the energy transition.
“Today I’m pleased to once again share a 10-year plan that provides a combination of industry-leading returns and cash flow growth, driven by our deep, durable and diverse portfolio. Our continued focus on capital discipline and investing in low cost of supply opportunities allows us to share a plan that keeps getting better and differentiates us from our peers,” said Ryan Lance, ConocoPhillips chairman and chief executive officer. “We remain committed to our Triple Mandate and our foundational principles and priorities. And we continue to position our company for the energy transition, accelerating our emissions reduction initiatives and expanding our global LNG business.”
The plan is based on a $60 per barrel WTI mid-cycle price. Highlights of the 10-year plan include:
- Greater than $115 billion of free cash flow (FCF) available for distributions, representing greater than 90% of market cap, as of March 31, 2023.
- Durable cash flow growth with projected cash from operations (CFO) and FCF compounded annual growth rate (CAGR) of approximately 6% and 11%.
- WTI FCF breakeven price of approximately $35 per barrel.
- Capital expenditures expected to average approximately $10 billion annually, resulting in 4 to 5% production CAGR at an average reinvestment rate of approximately 50%.
- Return on capital employed (ROCE) increasing over 1 percentage point annually.
- A strong balance sheet with gross debt reduction on track to meet previously announced $5 billion reduction target by 2026.
- Resource base of approximately 20 billion barrels of oil equivalent at less than $40 per barrel WTI, representing a resource life of more than 30 years at current production levels.
- An acceleration in the company’s greenhouse gas (GHG)-intensity reduction target through 2030 from 40-50% to 50-60%, using a 2016 baseline.
The ConocoPhillips Analyst & Investor Meeting will begin at 8:30 a.m. Eastern time and is expected to be two and a half hours in duration, including a question-and-answer session. A link to the live webcast and slide deck will be available on the ConocoPhillips Investor Relations website, www.conocophillips.com/investor, approximately 30 minutes prior to the start of the webcast. The event will also be archived and available for replay later in the day, with a transcript posted shortly afterward.