U.S. independent ConocoPhillips Co. aims to generate about $19 billion in free cash flow between 2020 and 2029 from its Lower 48 assets with the Permian Basin, Bakken and Eagle Ford Shale—the so-called Big 3—leading the way.
“We now have 6.5 billion barrels at less than $40 cost of supply in the Lower 48. Six billion barrels of that is in the Big 3 and that’s grown by about 1 billion barrels since our last Analysts Day in 2017,” Dominic Macklon, president of the company’s Lower 48 region, told analysts Nov. 19. “No greater than 97% of those increases have been organic, driven primarily by successful results in additional benches in the Delaware and improved well performance in the southwest area of Eagle Ford.”
The goal is part of the company’s 10-year plan that targets about $50 billion in free cash flow, limiting spending to less than $7 billion over the next decade as it grows annual production by more than 3% on average.