ConocoPhillips, the third-largest U.S. oil company, said it will sell about $10 billion of assets in the next two years and cut capital spending in 2010 to reduce debt and increase returns on capital.
The divestitures may include oil and natural-gas properties and refineries, Houston-based ConocoPhillips said Wednesday in a statement. Proceeds will be used to help the company achieve its target debt-to-capital ratio of 20 percent to 25 percent, according to the statement.
ConocoPhillips, which said it will cut capital spending 12 percent to $11 billion in 2010, is still grappling with debt taken on with its 2006 acquisition of gas producer Burlington Resources Inc. The company’s debt-to-capital ratio was 34 percent as of June 30. It’s working to end a two-year slide in output as slumping gas prices drag down profits.
ConocoPhillips rose $1.29 Wednesday to $49.70 a share in New York Stock Exchange composite trading.
