Conoco joins big oil’s newfound thrift with plan to cut debt

Conoco joins big oil’s newfound thrift with plan to cut debt

ConocoPhillips will use a rebound in oil and gas prices to cut debt by about 25% over the next five years, signaling a focus on financial prudence even after completing one of the biggest shale takeovers in recent years.

The Houston-based company will cut its borrowings by $5 billion, it said in a statement Tuesday, essentially returning its debt pile to the same level as before its purchase of Concho Resources Inc. earlier this year.

The plan comes in addition to Conoco’s $1.5 billion-a-year share buyback, which may be increased by the planned sale of its 10% stake in Cenovus Energy Inc., valued at about $2 billion at current prices.