ConocoPhillips says Q4 forecast incorporates uncertainty around Qatar production levels
COP•ConocoPhillips said its fourth-quarter forecast incorporates uncertainty around Qatar production levels. It expects Lower 48 production to rise sequentially, turnaround-related impacts to be flat versus Q3 and capital spending to be modestly higher.
1. Q4 outlook
ConocoPhillips said its fourth-quarter forecast incorporates uncertainty around Qatar production levels. The company expects Lower 48 production to rise sequentially, while turnaround-related production impacts are expected to be flat versus Q3 and capital spending modestly higher.
2. Longer-term cash flow
The company said free cash flow growth is expected to continue beyond a 2029 inflection point and through the next decade, at a structurally lower reinvestment rate. Its CEO said growing cash flow from operating activities will make more cash available to return to shareholders.
3. Operations and costs
ConocoPhillips expects low-single-digit overall cost inflation despite double-digit percentage increases in fuel, logistics and chemical costs, and said higher industry activity is tightening Lower 48 oilfield services capacity. Drilling at the Willow project is expected to begin early next year, and the company said it has made no decision on a potential sale of its Norway assets.
