Conoco Cuts Capex Budget; Will Sell $10B In Assets |
| Wall Street Journal - Oct 7, 2009 |
ConocoPhillips (COP) said Wednesday it would shed $10 billion in assets over the next two years, cut expenditures and raise dividends in a bid to shore up its finances and restore confidence among investors.
The move represents a major turnabout for an oil and gas company that embarked on gigantic acquisitions and racked up debt during boom times, which came to an abrupt end as the global recession ensued. ConocoPhillips, the third-largest U.S. energy company by market value after ExxonMobil Corp. (XOM) and Chevron Corp. (CVX), has fared worse than its peers following last year's collapse of petroleum and natural gas prices.
ConocoPhillips upped its exposure to both natural gas and refining on the assumption that prices for raw hydrocarbons and useful products such as gasoline and diesel would remain relatively high. When it became apparent that its early estimates were overly optimistic, ConocoPhillips earlier this year cut thousands of jobs and slashed capital expenditures - the only major integrated U.S. oil company to do so.
Read Full Article from Wall Street Journal
- Posted: 2009-10-07 15:02:20
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