ConocoPhillips (NYSE:COP) plans to spend billions in 2011 on the development of oil and gas properties outside of North America, as the company attempts to generate production off its large base of international properties.

TUTORIAL: How To Read Financial Tables

2011 Capital Budget
ConocoPhillips will spend approximately 50% of its $12 billion upstream capital budget on international projects in 2011. These funds will be spread across many different projects across Asia-Pacific, Africa and the North Sea. (L2)

Asia Pacific
The company plans to spend $2.4 billion in 2011 on various projects in the Asia-Pacific region, with a major focus on a liquefied natural gas (LNG) project in Australia. The hope is to grow production here by an 8% compound annual growth rate (CAGR) through 2015.

The Australian LNG project involves the development of multiple coal bed methane fields located onshore and the construction of two LNG trains on an island off the coast. ConocoPhillips is looking to sanction the project by the middle of 2011, and plans to spend $1.4 billion on this project in 2011. The company expects first production of LNG in 2015.

ConocoPhillips is partnering with China Petroleum & Chemical Corporation (NYSE:SNP) and Origin Energy, a local Australian company to develop this project, the total cost of which is estimated at $18 billion.

There are several other projects of this type in Australia. BG Group (LSE:BG) is planning a $15 billion LNG project, and (L5) Royal Dutch Shell (NYSE:RDS) is involved with PetroChina (NYSE:PTR) on another LNG facility.

ConocoPhillips is also investing $600 million in various projects in Indonesia and Malaysia in 2011. These projects are expected to have peak production of 105,000 barrels of oil equivalent (BOE) per day.

North Sea
Another major area for ConocoPhillips is the North Sea, where the company is planning to spend $1.5 billion in 2011. One project under development is the Jasmine Field in the English part of the North Sea, and which is expected to start up production in 2012.

ConocoPhillips estimates peak production of 88,000 BOE per day from Jasmine, and is developing the field in partnership with Eni (NYSE:E) and BG Group.

Africa
ConocoPhillips is active in Algeria and is working on the El Merk project. The company expects first production here in 2012. Another project is being developed in Libya, but recent events here may have delayed the start up of this project.

The Bottom Line
ConocoPhillips is counting on the development of its international portfolio of oil and gas properties to meet the company's goals on production growth. The company has many to choose from in Asia-Pacific, Africa and the North Sea. (Before jumping into this hot sector, learn how these companies make their money. Check out Oil And Gas Industry Primer.)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Related Articles
  1. Fundamental Analysis

    5 Must-Have Metrics For Value Investors

    Focusing on certain fundamental metrics is the best way for value investors to cash in gains. Here are the most important metrics to know.
  2. Stock Analysis

    Analyzing Altria's Return on Equity (ROE) (MO)

    Learn about Altria Group's return on equity (ROE) and analyze net profit margin, asset turnover and financial leverage to determine what is causing its high ROE.
  3. Fundamental Analysis

    4 Predictions for Oil in 2016

    Learn four predictions for oil markets in 2016 including where prices are heading and the key fundamental factors driving the market.
  4. Fundamental Analysis

    Performance Review: Commodities in 2015

    Learn how commodities took a big hit in 2015 with a huge variance in performances. Discover how the major commodities performed over the year.
  5. Investing News

    Icahn's Bet on Cheniere Energy: Should You Follow?

    Investing legend Carl Icahn continues to lose money on Cheniere Energy, but he's increasing his stake. Should you follow his lead?
  6. Stock Analysis

    Analyzing Google's Return on Equity (ROE) (GOOGL)

    Learn about Alphabet's return on equity. How has its ROE changed over time, how does it compare to its peers and what factors are driving ROE for the company?
  7. Investing News

    Is Buffett's Bet on Oil Right for You? (XOM, PSX)

    Oil stocks are getting trounced, but Warren Buffett still likes one of them. Should you follow the leader?
  8. Stock Analysis

    The Biggest Risks of Investing in SandRidge Stock

    Learn about the significant risks of investing in SandRidge. Read how the company may not be able to service its substantial debt load.
  9. Stock Analysis

    The Top 5 Micro Cap Alternative Energy Stocks for 2016 (AMSC, SLTD)

    Follow a cautious approach when purchasing micro-cap stocks in the alternative energy sector. Learn about five alternative energy micro-caps worth considering.
  10. Stock Analysis

    Analyzing Porter's Five Forces on Under Armour (UA)

    Learn about Under Armour and how it differentiates itself in the competitive athletic apparel industry in light of the Porter's Five Forces Model.
RELATED FAQS
  1. What is the formula for calculating EBITDA?

    When analyzing financial fitness, corporate accountants and investors alike closely examine a company's financial statements ... Read Full Answer >>
  2. How do I calculate the P/E ratio of a company?

    The price-earnings ratio (P/E ratio) is a valuation measure that compares the level of stock prices to the level of corporate ... Read Full Answer >>
  3. How do you calculate return on equity (ROE)?

    Return on equity (ROE) is a ratio that provides investors insight into how efficiently a company (or more specifically, its ... Read Full Answer >>
  4. How do you calculate working capital?

    Working capital represents the difference between a firm’s current assets and current liabilities. The challenge can be determining ... Read Full Answer >>
  5. What is the formula for calculating the current ratio?

    The current ratio is a financial ratio that investors and analysts use to examine the liquidity of a company and its ability ... Read Full Answer >>
  6. What is the formula for calculating earnings per share (EPS)?

    Earnings per share (EPS) is the portion of a company’s profit that is allocated to each outstanding share of common stock, ... Read Full Answer >>
COMPANIES IN THIS ARTICLE
Trading Center