ConocoPhillips announced its 2016 operating plan. Key highlights from the plan include:
$7.7 billion capital budget;
1 to 3 percent production growth, adjusted for asset sales; and
$7.7 billion of operating costs.
Chairman and Chief Executive Officer Ryan Lance commented, 'We're setting an operating plan for 2016 that recognizes the current environment, which remains challenging. We are significantly reducing capital and operating costs, while maintaining our commitment to safety and asset integrity. We also retain the flexibility to adjust capital spending in response to market factors. Our plan highlights the actions we accelerated over the past year to position our company for low and volatile prices. As we enter 2016, ConocoPhillips has greater capital flexibility, a more competitive cost structure, a streamlined portfolio and the ability to deliver profitable growth from a high-quality resource base. These advantages, coupled with our strong balance sheet, give us the ability to maintain a compelling dividend and close the gap on cash flow neutrality across a range of prices.'