How Much Capital Will ConocoPhillips Spend Geographically In 2016?
Much like its peers, ConocoPhillips (NYSE:COP), an independent exploration and production company, has been struggling to weather the commodity downturn that began in mid-2014. The company’s price realizations dropped significantly in 1Q’16 as crude oil prices hit multi-year lows of under $30 per barrel in February. This forced the Houston-based oil and gas company to reduce its capital spending budget for 2016 from $6.4 billion to $5.7 billion, post its first quarter results. This represents a drop of almost 50% in the company’s capital spending compared to last year.
Below, we present our estimates of the company’s capital allocation for 2016 based on its geographies. We figure that ConocoPhillips will continue to spend a major portion of its capital expenditure on the Lower 48 and Alaska region, even though these areas have a relatively higher break-even price compared to other tight oil plays in the US.
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Have more questions about ConocoPhillips (NYSE:COP)? See the links below:
- Weak Commodity Prices Drive Down ConocoPhillips’ 1Q’16 Earnings; Company Cut Capex Guidance To $5.7 Billion
- How Will ConocoPhillips’ Revenue And EBITDA Grow Over The Next Five Years?
- How Has ConocoPhillips’ Revenue And EBITDA Changed Over The Last Five Years?
- Weak Commodity Prices Drive Down ConocoPhillips’ 1Q’16 Earnings; Company Cut Capex Guidance To $5.7 Billion
- ConocoPhillips’ 1Q’16 Results To Remain Weak As The Commodity Downturn Deepens
- Why Is OPEC An Important Determinant Of Crude Oil Prices?
- Why Is China A Key Factor In Determining Crude Oil Prices?
- How Are Crude Oil Prices And Global Oil Rig Count Correlated?
- How Are Natural Gas Prices And Global Gas Rig Count Correlated?
- How Have Plummeting Crude Oil Prices Impacted Merger And Acquisitions In The US Oil And Gas Industry?
- How Has ConocoPhillips’ Production Mix And Price Realizations Changed Over The Last 6 Years?
- How Will ConocoPhillips’ Revenue Move If Crude Oil Prices Rebound To $100 Per Barrel By 2018?
- How Will ConocoPhillips’ Revenue Move If Crude Oil Price Average At $50 Per Barrel In 2018?
- What Is ConocoPhillips’ Fundamental Value Based On 2016 Estimated Numbers?
- What Is ConocoPhillips’ Revenue And EBITDA Breakdown?
- How Has ConocoPhillips’ Revenue And EBITDA Composition Changed Over The Last 6 Years?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for ConocoPhillips
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