ConocoPhillips Cuts Production; Reduces 2020 Cash Uses

(RTTNews) - ConocoPhillips (COP) announced further capital, operating cost and share repurchase reductions of $3 billion. It also announced its intention to defer production. The company will curtail 225,000 gross barrels of oil per day.

The company noted that the actions reflect its view that near-term oil prices will remain weak, largely due to demand impacts from COVID-19 and continued oil oversupply.

The company expects to reduce production at its Surmont oil sands facility in Canada by about 100,000 barrels of oil per day.

In addition, the company plans to begin curtailing production across its Lower 48 region. Initially, the company expects to curtail about 125,000 barrels of oil per day gross.

The company had exercised $2.2 billion of flexibility in March through reductions in both its planned 2020 capital spending and share repurchase.

The company today said the cumulative capital, operating cost and share repurchase actions represent a reduction in 2020 cash uses of over $5 billion versus original operating plan guidance.

The company said its previous 2020 guidance items should not be relied upon and further guidance will be suspended.