ConocoPhillips' Stock Slips After Cutting Annual Capital Spending Plans

Shares of ConocoPhillips fell 0.8% in premarket trade Tuesday, after the oil and gas exploration company announced a new three-year plan to reduce annual capital expenditures to about $11.5 billion from its previous plan of $16 billion. Under the new plan, the company expects development drilling spending to increase while spending on major projects continues to decline. "We now believe it is prudent to position the company for lower, more volatile prices for the foreseeable future," said Chief Executive Ryan Lance. "Out new plan will continue to focus on delivering a compelling dividend, while also achieving sustainable, modest volume growth and competitive returns." The stock has lost 6.8% in the past three months, while the S&P 500 has gained 3.4%.