The company announced a further reduction in full-year spending targets. It now plans to utilize $11 billion in capital expenditures this year, down from its prior forecast for $11.5 billion. Consider that before the crash in oil prices, ConocoPhillips had planned to spend $16 billion, so this is clearly a meaningful reduction. Second, ConocoPhillips is increasing production. Last quarter, total production grew 4% year over year, excluding the company's divestitures and operations in Libya. This growth was due to ConocoPhillips' shift to higher-margin liquids production.