ConocoPhillips to slash capital spending by 25% next year
ConocoPhillips' stock fell 0.9% in premarket trade Thursday, after the oil and gas exploration and production company said it will "significantly" cut capital expenditures and operating costs next year as it positions for continued low and volatile commodities prices. The $7.7 billion capital budget for 2016 down 25% from expected spending this year, and 55% below 2014 levels. The primary areas of budgets cuts will come from lower spending on major projects and efficiency improvements. The company said it expects to close about $2.3 billion worth of asset sales, with the bulk of the sale agreements already in place. The stock has tumbled 30% year to date through Wednesday, while the S&P 500 has slipped 0.6%.
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