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ConocoPhillips plans sale of Texas, Oklahoma gas assets

by Mike Robinson

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© Reuters. FILE PHOTO : ConocoPhillips’ logo appears on a monitor on the New York Stock Exchange floor (NYSE) New York, U.S.A, January 13, 2020. REUTERS/Brendan McDermid

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By Shariq Khan

(Reuters) – ConocoPhillips, a U.S. shale-oil producer (NYSE:), is in talks with an advisor to sell gas-producing assets located in North Texas’ Anadarko Basin and Western Oklahoma. According to documents and two sources seen by Reuters,

ConocoPhillips is trying to make cash, and this sale includes both non-operated and operated leaseholds as well royalty interests in Oklahoma’s STACK and SCOOP formations. It comes after a massive buying spree which made ConocoPhillips America’s top oilfield producer.

ConocoPhillips’ Anadarko assets may be worth around $200m, and the non-operated assets will likely fetch $100 million. According to reports,

ConocoPhillips have spent approximately $23 Billion over the past 18 month on properties within the Permian region. ConocoPhillips bought Concho Resources, NYSE: for over $13 Billion before spending $9.5B to purchase Shell’s Texas acreage.

ConocoPhillips increased its asset sales target to $4 billion and $5 Billion by September in order to pay for the expense. This should give ConocoPhillips a boost as it strives to achieve its target.

ConocoPhillips began marketing its non-operated and operated land parcels. The company could market one of them or all, but it can also sell the other to separate bidders or parties. Sources said that ConocoPhillips could keep the packages or either one.

Because the sales talks are confidential, sources asked for anonymity. ConocoPhillips representatives stated that they do not discuss ongoing commercial development.

According to Reuters, the U.S. shale producer’s Anadarko assets are 261,200 acres and produce around 8,000 barrels per day (boepd). The non-operated package includes 17,700 acres of Oklahoma land that produces 3,000 boepd.

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