ConocoPhillips Cuts Capex to $5.7 Billion, Revenue Falls 37% for First-Quarter 2016

Researched by Industrial Info Resources (Sugar Land, Texas)--Oil & Gas Production giant ConocoPhillips Company (NYSE:COP) (Houston, Texas) announced on Thursday that it slashed its 2016 capital spending budget to $5.7 billion from the already lowered amount of $6.4 billion that was announced in February. During the first-quarter earnings conference call, the firm said it cut capital expenditures again this year due to reduced deep water exploration activity and low crude prices. ConocoPhillips' total revenue fell 37% from the same period of 2015 to $5.02 billion. Industrial Info is tracking 129 active ConocoPhillips projects worth $83.31 billion.

The company said that its key projects are on track even as it progresses on discontinuing its deep water exploration activities. It also transitioned from 13 operated rigs at the end of 2015 in the Lower 48 states to three operating rigs this month.

Its Canadian operations experienced a decrease in gas volume but a rise in bitumen production. The company is close to first production at the Foster Creek plant addition bitumen production and processing plant in Bonnyville, Alberta. It is also close to first production for phase F at the Christina Lake Bitumen Production plant in Fort McMurray, Alberta. Both of these projects are jointly owned with Cenovus Energy Incorporated (NYSE:CVE) (Calgary, Alberta).

ConocoPhillips is also conducting appraisal activity in Senegal.

The company reported a first-quarter 2016 net loss of $1.5 billion, compared with first-quarter 2015 earnings of $272 million.

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