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Oil & Gas

Conoco will sell off $10 billion of assets

October 07, 2009
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The Associated Press reports that ConocoPhillips will increase its quarterly dividend 6 percent, sell $10 billion of assets and lower capital spending in 2010 in an effort to strengthen its financial position. The Houston-based company plans to spend less on capital projects in 2010 compared with 2009 levels. Next year''s capital budget is set around $11 billion, down from $12.5 billion in 2009. At this level of funding, ConocoPhillips said it will support exploration, production and reserve replacement, while preserving its project portfolio for future development. Over the next two years, the company intends to sell about $10 billion of assets, primarily from its exploration & production and refining & marketing portfolio. Proceeds from the sales would be used to pay off debt and to accelerate the company''s return to its stated target debt-to capital ratio of 20 to 25 percent. In a statement, the company said these moves are in line with its plan to "improve its financial position and increase returns on capital through a combination of enhanced capital discipline and portfolio rationalization."
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