ConocoPhillips announced a dividend decrease by two-thirds to 25 cents a share

• ConocoPhillips announced a dividend decrease by two-thirds to 25 cents a share from 74 cents a share. This frees up an incremental $2.4 billion in cash. 
• The decision to reduce the dividend and make further reductions in operating expenditures (opex) and capital expenditures (capex) as unavoidable with oil prices near $30 a barrel.

Additionally, ConocoPhillips announced a further 2016 capex reduction by $1.3 billion to $6.4 billion. Finally, incremental opex reductions of $700 million will also support cash flow. In total, the three reductions represent an incremental $4.4 billion in potential cash-flow improvements versus prior guidance.

 In spite of planned capex reduction and Lower 48 States declines of about 10%, ConocoPhillips expects year-over-year production will remain flat in 2016. Incremental production from development programs (Alaska, China, Europe, Lower 48) and major project start- and ramp-ups are expected to offset base declines of 8%. These projects include the ramp-up of Australia Pacific Liquid Natural Gas Project, startup of Kebabangan [offshore Malaysia] and the continued ramp-up of Surmont 2 [Canada] and Foster Creek, Christina Lake and Narrows Lake [Canada].