ConocoPhillips plans sale of Texas, Oklahoma gas assets - sources
Reuters
Published Mar 24, 2022 12:12PM ET
By Shariq Khan
(Reuters) - U.S. shale oil producer ConocoPhillips (NYSE:COP) is working with an adviser to sell its gas-producing assets in the Anadarko Basin of North Texas and Western Oklahoma, according to two sources and documents seen by Reuters.
The planned sale, which includes both operated and non-operated leaseholds and royalty interests in the STACK and SCOOP formations of Oklahoma, comes as ConocoPhillips tries to raise cash by offloading non-core land after a buying spree made it the top producer by volume in the top U.S. oilfield.
The Anadarko assets operated by ConocoPhillips could fetch the company around $200 million, while the non-operated assets are likely to be valued at about $100 million, according to the sources.
Over the past 18 months, ConocoPhillips has spent about $23 billion buying properties in the Permian basin. Before spending $9.5 billion to acquire Shell (LON:RDSa)'s acreage in Texas, ConocoPhillips took over rival Concho Resources (NYSE:CXO) for more than $13 billion.
To cover the outlay, ConocoPhillips in September raised its target for asset sales to between $4 billion and $5 billion by the end of next year. The recent sharp rise in energy prices, which boosted asset values, should be a tailwind for the company as it seeks to hit this target.
ConocoPhillips has begun marketing both the operated and non-operated land parcels, which it could sell to a single bidder or separate parties, said the sources, adding that the company could hold onto one or both packages if it does not receive attractive offers.
The sources requested anonymity as the sale talks are confidential. A ConocoPhillips spokesperson said the company does not comment on ongoing business development or commercial activities.
The U.S. shale producer's operated Anadarko assets consist of 261,200 net acres producing around 8,000 barrels of oil equivalent per day (boepd), while the non-operated package covers 17,700 net acres in Oklahoma and has production of 3,000 boepd, according to the marketing document seen by Reuters.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.