ConocoPhillips Provides Update on Strategic Progress (COP)

ConocoPhillips (NYSE: COP), the Houston, Texas-based integrated energy company, today reported on the progress of its three-year strategic plan to enhance returns and create value for its shareholders. ConocoPhillips also announced an expenditure program or $15.5 billion for 2012 and a program to buyback up to an additional $10 billion of its common stock.

Jim Mulva, Chairman and CEO of ConocoPhillips, said that the company has made strong progress on the plan set out in 2010 to enhance its business through a disciplined approach to capital investment, maintaining a strong balance sheet and growing distributions to shareholders. Mulva said that the company continues to optimize the portfolio, selling noncore holdings and allocating investments to the highest-returning projects to position its business for improved returns and greater value.

ConocoPhillips is on path to complete its plans to reposition into two energy companies during the second quarter of 2012. Mulva said that the company’s planned repositioning in 2012 will help it grow the value of the two companies for shareholders and unlock the potential of its assets and employees.

In 2012, the company plans to spend $15.5 billion on capex, reflecting an increase in Exploration and Production segment expenditures.

Commenting on the capex program, Mulva said that the program reflects the company’s strategic emphasis on delivering value by investing in the most profitable opportunities.

The company plans to spend $14 billion on exploration and production. Nearly 60% of the exploration and production capital program will be spent in North America. The rest will be spent in Europe, Asia Pacific and Africa.

ConocoPhillips also plans to continue to focus on accessing, testing and appraising material opportunities in both conventional and non-conventional oil and gas plays.

ConocoPhillips also plans to repurchase approximately 155 million of its own shares for $11 billion this year. The company also said that its Board approved a repurchase of an additional $10 billion of its common stock.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.