ConocoPhillips Approves 2008 Capital Budget of $14.3 Billion, Including $0.7 Billion of Capitalized Interest.Additional $1 billion of investments/funding of affiliates; Additional cash available for dividends and share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. HOUSTON -- ConocoPhillips (NYSE NYSE See: New York Stock Exchange :COP) today approved a 2008 capital budget of $14.3 billion, including cash capital expenditures and capitalized interest Capitalized interest Interest that is not immediately expensed, but rather is considered as an asset and is then amortized through the income statement over time. In the context of project financing, interest that is paid by additional borrowing. . Loans to affiliates and contributions to fund the upstream business venture with EnCana add an additional $1.0 billion, bringing the total authorized capital authorized capital n (COMM) → capital m autorizado or social authorized capital n (Comm) → capital social program to $15.3 billion. "Our 2008 planned capital program enables us to continue pursuing strategies for value-generating growth," said Jim Mulva, chairman and chief executive officer. "The business environment remains challenging, with inflation in materials and services impacting both project investment and day-to-day operating costs operating costs npl → gastos mpl operacionales . We have, however, built a strong foundation of assets that enables us to generate competitive investment opportunities. We will continue to exercise capital discipline and selectively invest in projects that add production and increase our capability to add value over the long term. This capital program will permit us to pursue a complementary financial strategy designed to strengthen distributions to shareholders through increased dividends and continued share repurchases." Approximately 80 percent of the company's 2008 total authorized capital program will be allocated to its Exploration and Production segment. The Refining and Marketing segment will receive about 18 percent, with the remaining being spent in Emerging Businesses and Corporate. Additional details on the capital program for each of the company's business segments are provided below. "We look forward to discussing our 2008 capital and operating plans in greater detail when we meet with the investment community on March 12, 2008, in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of ," said Mulva. Exploration and Production (E&P) E&P's 2008 capital budget is expected to be $11.0 billion, including capitalized interest of $0.6 billion. This, combined with approximately $0.4 billion for loans to affiliates and the company's $0.6 billion of contributions to the upstream business venture with EnCana, results in a total E&P capital program of $12.0 billion. This program, and the regional totals below, include the capital allocated for the company's global gas activities, as well as $1.6 billion for worldwide exploration activities. In the U.S. Lower 48, the company intends to spend about $3.3 billion, primarily on its ongoing development programs, including those in the Bossier Bossier may refer to:
San Juan (săn wän, Span. sän hwän), city (1991 pop. 353,476), capital of San Juan prov., W Argentina. It is a commercial and industrial center in an agricultural region. , Permian, Fort Worth and Piceance basins The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. . Funds also will be spent on the development of new projects, including the Rockies Express natural gas pipeline project. Spending of $2.2 billion in Canada will primarily focus on ongoing development programs in the Western Canada
Western Canada, commonly referred to as the West gas basins and progression of heavy oil projects, including those associated with the EnCana business venture. About $1.8 billion has been allocated for projects in the North Sea, including the continued development of the J-Block fields, Britannia and its satellite fields, and existing and new opportunities in the Ekofisk area. Within the Asia Pacific region, the company anticipates expenditures of approximately $1.7 billion. The majority of the funding will support the continued development of Bohai Bay in China; oil and gas reserves offshore in Block B and onshore South Sumatra South Sumatra or Sumatera Selatan is a province of Indonesia. It is on the island of Sumatra, and borders the provinces of Lampung to the south, Bengkulu to the west, and Jambi to the north. in Indonesia; and fields offshore Malaysia and Vietnam. In the Russia and Caspian Sea Caspian Sea (kăs`pēən), Lat. Mare Caspium or Mare Hyrcanium, salt lake, c.144,000 sq mi (373,000 sq km), between Europe and Asia; the largest lake in the world. region, about $1.3 billion of capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. will primarily support the continued development of the Kashagan field Kashagan Field is an oil field located in Kazakhstan. The field is situated in the northern part of the Caspian sea close to the Kazakhstan city of Atyrau. The field was discovered in 2000. The field is operated by Eni under the North Caspian Sea Production Sharing Agreement. in the Caspian Sea and the Yuzhno Khylchuyu field in northern Russia. E&P capital spending of $1 billion in Alaska is expected to be primarily directed toward the development of the Alpine satellites and the West Sak heavy-oil field, as well as continued development within the existing Prudhoe Bay Prudhoe Bay, inlet of the Beaufort Sea and Arctic Ocean, N Alaska, in the Alaska North Slope region, east of the Colville River delta. In 1968 one of the largest oil reserves in North America was discovered in Prudhoe Bay. and Kuparuk areas. In the Middle East and Africa, the company estimates it will spend approximately $0.7 billion, primarily on the continued development of the Qatargas 3 project in Qatar, the Waha Concessions in Libya, and several onshore developments in Nigeria. Refining and Marketing (R&M) The 2008 capital program for R&M is approximately $2.8 billion, including capitalized interest of $0.1 billion. The company has allocated about $1.6 billion for U.S. refining, primarily for projects related to sustaining and improving the existing business with a focus on reliability, energy efficiency, capital maintenance and regulatory compliance. Work continues at a number of refineries on projects to increase crude oil capacity, expand conversion capability and increase clean product yield. International R&M is expected to spend approximately $0.4 billion, with a focus on projects related to reliability, safety and the environment, as well as an upgrade project at the Wilhelmshaven, Germany, refinery and the advancement of a full-conversion refinery project in Yanbu, Saudi Arabia Saudi Arabia (sä  `dē ərā`bēə, sou`–, sô–), officially Kingdom of Saudi Arabia, kingdom (2005 est. pop. .
The remaining $0.8 billion of R&M capital is for projects in the company's domestic transportation and marketing businesses, including the Keystone key·stone n. 1. Architecture The central wedge-shaped stone of an arch that locks its parts together. Also called headstone. 2. The central supporting element of a whole. crude oil pipeline project. Emerging Businesses and Corporate The 2008 capital program for Emerging Businesses and Corporate is approximately $0.5 billion. The majority of the spending is earmarked for power generation, primarily for the second phase of an expansion project at the company's Immingham Combined Heat and Power plant in the United Kingdom. In Corporate, capital expenditures are expected to be primarily for global information systems and services projects. Energy Resource Development In addition to the research and development funds already dedicated to projects as part of the 2008 capital program, the company will again allocate more than $150 million for research efforts focused on the development of unconventional oil and gas resources and the development of new energy sources, such as alternatives and renewables. "ConocoPhillips believes a number of energy sources are necessary to meet the demands of consumers," said Mulva. "We are committed to diversifying our energy resource development and improving energy efficiency, and doing so in an environmentally responsible manner." Asset Rationalization Program "Our asset rationalization program is expected to generate proceeds of approximately $3.1 billion during 2007," said Mulva. "In 2008, we anticipate completing the disposition of our U.S. retail assets, and we will continue to evaluate additional opportunities to optimize and strengthen our asset portfolio." CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and OF 1995 This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Forward-looking statements relate to future events and anticipated results of operations, business strategies, and other aspects of our operations or operating results. In many cases you can identify forward-looking statements by terminology such as "anticipate," "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target" and other similar words. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, there can be no assurance that such expectation or belief will result or be achieved. The actual results of operations can and will be affected by a variety of risks and other matters including, but not limited to, crude oil and natural gas prices; refining and marketing margins; potential failure to achieve, and potential delays in achieving expected reserves or production levels from existing and future oil and gas development projects due to operating hazards, drilling risks, and the inherent uncertainties in interpreting engineering data relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc underground accumulations of oil and gas; unsuccessful exploratory drilling activities; lack of exploration success; potential disruption or unexpected technical difficulties in developing new products and manufacturing processes; potential failure of new products to achieve acceptance in the market; unexpected cost increases or technical difficulties in constructing or modifying company manufacturing or refining facilities; unexpected difficulties in manufacturing, transporting or refining synthetic crude oil; international monetary conditions and exchange controls; potential liability for remedial actions A remedial action is a change made to a nonconforming product or service to address the deficiency. Rework and repair are generally the remedial actions taken on products, while services usually require additional services to be performed to ensure satisfaction. under existing or future environmental regulations; potential liability resulting from pending or future litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. ; general domestic and international economic and political conditions, as well as changes in tax and other laws applicable to our business. Other factors that could cause actual results to differ materially from those described in the forward-looking statements include other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission (SEC). Unless legally required, ConocoPhillips undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Cautionary Note to U.S. Investors -- The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Production is distinguished from oil and gas production because SEC regulations define Syncrude as mining-related and not part of conventional oil and natural gas reserves. The company uses certain terms in this release, such as "resources" that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosures in the company's periodic filings with the SEC, available from the company at 600 North Dairy Ashford Road, Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the 77079 and the company's Web site at www.conocophillips.com/investor/sec . This information also can be obtained from the SEC by calling 1-800-SEC-0330. |
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