ConocoPhillips (NYSE:COP), the largest U.S. independent oil company, said it anticipates its 2016 capital expenditure to be 25% lower than this year's estimated budget, as it responds to a slump in oil prices.
The Houston, Texas-based company said in a statement on Thursday that it expected 2016 capital budget of $7.7bn, and also said it expects to raise $2.3bn from non-core asset sales.
During October, Conoco had trimmed its 2015 spending plans again after reporting a wider-than-expected loss for its third quarter.
At the time, Conoco projected 2015 capital spending of $10.2bn, down from its prior guidance of $11bn. It also lowered its operating cost outlook to $8.2bn from $8.9bn.
The company's plan for next year highlights actions Conoco accelerated over the past year to position the company for low and volatile prices, CEO Ryan Lance said in the statement.
Conoco and other major oil companies have been trimming costs and capital spending plans in response to an extended downturn in prices for crude.
Shares gained 2.7% to $90.01 at 11:08 a.m. in New York, trimming this year's slump to 20%.
Chevron (NYSE:CVX) on Wednesday projected capital spending plans for 2016 of $26.6bn, which the oil giant said is 24% below expected capital and exploratory spending this year.