ConocoPhillips CEO Ryan Lance said Monday his company is planning to keep capital expenditure at its currently reduced level for the next three years.
Houston-based ConocoPhillips is also planning to curb spending on major projects and sell some non-core producing U.S. acreage but has not disclosed how many acres it plans to sell.
The company expects its total output to grow by 2 percent to 3 percent this year despite expected production declines at some shale fields in the third and fourth quarter, Reuters said.
ConocoPhillips earned $272 million in the first quarter of 2015, or $0.22 per share, down significantly from $2.1 billion in earnings during the same quarter last year.
The company sunk to an adjusted net loss of $222 million in the first quarter, or a loss of $0.18 per share, down from adjusted earnings of $2.3 billion in the first quarter of 2014.
ConocoPhillips said the earnings slide was primarily caused by “lower realized prices and increased dry hole expense, partially offset by higher volumes.”
“This significant downturn in prices has been a test for the industry….While the environment remains uncertain, our value proposition remains unchanged – deliver a compelling dividend and predictable growth, with a focus on margins and financial returns,” Lance said in the company’s first quarter results.