ConocoPhillips Cuts 2016 Spending Plans, Slashes Dividend
February 04 2016 - 7:07AM
Dow Jones News
By Tess Stynes
ConocoPhillips further reduced its capital-spending plans to
$6.4 billion for 2016 and said its board slashed is quarterly
dividend, joining a list of major oil companies to get slammed by
low oil prices.
Shares fell 4.2% to $37 in recent premarket trading.
The company also posted a fourth-quarter loss of $3.5 billion,
or $2.78 a share as it posted $2.7 billion in asset write-down to
reflect commodities prices and changes in its energy exploration
plans.
ConocoPhillips said its board approved cutting the quarterly
dividend to 25 cents a share from the previous level of 74 cents a
share.
The company, which in December had projected 2016 capital
expenditures at $7.7 billion, on Thursday also cuts it operating
cost estimate to $7 billion from $7.7 billion.
Chairman and Chief Executive Ryan Lance said in a news release,
"While we don't know how far commodity prices will fall, or the
duration of the downturn, we believe it's prudent to plan for lower
prices for a longer period of time."
"The actions we have announced will improve net cash flow by
$4.4 billion in 2016," Mr. Lance stated.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
February 04, 2016 07:52 ET (12:52 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
ConocoPhillips (NYSE:COP)
Historical Stock Chart
From Apr 2024 to May 2024
ConocoPhillips (NYSE:COP)
Historical Stock Chart
From May 2023 to May 2024