Analyzing ConocoPhillips’s Capital Expenditure Guidance

In October 2016, ConocoPhillips reduced its 2016 capital expenditure guidance by $300.0 million to ~$5.2 billion. That’s ~49.0% lower than what it spent in 2015.

COP’s 2016 capital expenditure guidance is ~$11.8 billion, or ~71.0%, lower than its capital expenditure in 2014.

In 3Q16, COP spent ~$916.0 million in capital expenditure, which was ~53.0% lower than $2.2 billion 3Q15. Sequentially, its capital expenditure has fallen ~19.0% from ~$1.1 billion in 2Q16.

Year-to-date, COP has spent ~$3.9 billion in capital expenditure.

Unlike ConocoPhillips, many other S&P 500 (SPY) upstream companies, including Southwestern Energy (SWN), Devon Energy (DVN), and Pioneer Natural Resources (PXD), have recently increased their 2016 capital guidance. The Vanguard Energy ETF (VDE) invests in the broader energy market.