ConocoPhillips (NYSE: COP) has given an update on its three-year strategic plan to improve returns and create value for its shareholders. The big news is that the company also announced a 2012 capital program of $15.5 billion as well as a repurchase plan of up to an additional $10 billion in common stock.
The company additionally provided an update on its $15-20 billion asset divestiture program for 2010-2012 and maintains that it is on track to complete its plans to reposition into two leading energy companies during the second quarter of 2012.
The downstream company, Phillips 66, is in refining and marketing, midstream and chemicals businesses; ConocoPhillips said it “will become one of the largest and most diverse global pure-play exploration and production companies.”
The 2012 capital program of $15.5 billion reflects an increase in Exploration and Production segment expenditures. The company also expects to deliver on its production and organic reserve replacement targets.
The 2012 capital program for E&P is $14.0 billion as follows:
- $2.2 billion for worldwide exploration,
- $0.4 billion of capitalized interest,
- and $0.7 billion for the company’s contributions to the FCCL business venture and loans to other affiliates.
- About 60% of the E&P capital program will be spent in North America.
The 2012 capital program for Refining and Marketing is approximately $1.2 billion, with $1.0 billion for its U.S. businesses and the remaining $0.2 billion for international operations.
For 2011, the company expects to have repurchased about 155 million of its own shares, a sum of 11% of the stock, for roughly $11 billion. The board of directors has now approved a share repurchase program for up to a further $10 billion of common stock.
The company remains committed to its previously announced $15-20 billion asset divestiture program for 2010-2012.
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