ConocoPhillips Outlines Investment Plans, Financial Priorities - Quick Facts

(RTTNews) - ConocoPhillips (COP) provided details of its financial priorities and operating plan at its Analyst and Investor Meeting in New York.

The highlights from the meeting included confirmation of the company's priorities of a compelling dividend and cash flow neutrality in 2017 and beyond; Cost improvement goal to reduce operating costs by $1 billion by year-end 2016 compared with 2014. Reductions will come primarily from lower lifting costs, improvements and standardization of processes, and lower general and administrative costs.

The highlights from the meeting also included details on a three-year investment plan with annual capital expenditures of approximately $11.5 billion. Under this plan the company expects to increase capital to development programs, primarily in the North American unconventionals, by approximately 50 percent as major project spending declines by approximately 45 percent.

It also included plans for volume growth, which is expected to be 2 to 3 percent in 2015 and increase to 1.7 million barrels of oil equivalent per day in 2017. Production from the company's Asia Pacific and Middle East, Canada and Lower 48 segments is expected to increase over this period, while production from the Alaska and Europe segments is expected to remain relatively flat. The company's growth outlook excludes production from Libya.