ConocoPhillips outlined details of a 2020-2029 operating and financial plan at an Analyst & Investor Meeting this week.

Highlights of the 10-year plan include:

• Free cash flow of approximately $50 billion based on a real West Texas Intermediate price of $50 per barrel and annual capital expenditures averaging less than $7 billion over the decade;
• A capital expenditures plan that reflects optimized pace of development within each asset, low capital intensity and overall low-declining base production;
• Currently announced and planned dispositions, as well as a future 25 percent dilution of company-operated Alaska assets consistent with the company’s historical practice of not funding major-project expenditures at 100 percent;
• Resource base of approximately 15 billion barrels of oil equivalent at less than $40 per barrel WTI average cost of supply;
• Forecast underlying compound annual production growth averaging over 3 percent;
• Projected ordinary dividends of approximately $20 billion, reflecting growth in the current dividend over the plan period;
• Projected $30 billion in share buybacks over the 10-year period, representing almost 50 percent of current market capitalization;
• Planned dividends and repurchases funded from free cash flow over life of the plan, representing a combined annual shareholder payout that exceeds our distribution target of more than 30 percent of cash from operations;
• Expected growth in return on capital employed of 1 to 2 percentage points annually; and
• Continued balance sheet strength with an expected leverage ratio of net debt to cash from operations of less than one.

“Over the past few years we have successfully transformed ConocoPhillips to position the company for consistent, predictable performance across the inevitable price cycles of our industry,” said Ryan Lance, chairman and chief executive officer. “We believe that we offer the market a compelling, long-term E&P investment that provides downside protection and full exposure to the upside. Today’s plan demonstrates sustained value creation through significant free cash flow generation, distinctive returns of capital and growing returns on capital.”

Lance continued, “We are committed to delivering superior returns to shareholders. Our plan provides a powerful, multi-year outlook that combines a robust, scenario-based strategy framework, a diverse, low cost of supply resource base, a disciplined, value-based investment approach and a world-class workforce. We believe we are unique in being able to offer this formula to the market.”

Link to ConocoPhillips US country profile