ConocoPhillips steps up land sale with divestment of some Eagle Ford assets – sources

The ConocoPhillips logo is displayed on a floor screen at the New York Stock Exchange (NYSE) in New York, U.S., January 13, 2020. REUTERS/Brendan McDermid/File Photo

April 7 (Reuters) – ConocoPhillips (COP.N) is working with an adviser to sell some of its Eagle Ford Basin assets in Texas worth around $100 million, according to two people familiar with the matter, so that it step up divestments to benefit from higher energy prices.

The planned sale, which includes a small portion of the oil and gas producer’s in-game assets Eagle Ford, comes as it attempts to offload non-essential land to raise cash after a buying spree took over. makes it the largest producer by volume in the Permian Basin. , the largest oilfield in the United States.

The sources requested anonymity because the sales plans are confidential. A spokesperson for ConocoPhillips said the company does not comment on its business development or ongoing business activities.

Over the past 18 months, ConocoPhillips has spent approximately $23 billion buying properties in the Permian Basin. Before spending $9.5 billion last year to acquire Shell’s Texas acreage, ConocoPhillips took over rival Concho Resources for more than $13 billion in 2020. read more

To cover expenses, ConocoPhillips raised its target in September to sell assets to between $4 billion and $5 billion by the end of next year. Since then, the oil producer has launched the sale of some of its Permian Basin and Anadarko Basin assets, which could collectively earn it well over $1 billion. Read more

The roughly $100 million in assets that ConocoPhillips is now trying to sell include about 231 drilling locations in the Eagle Ford Basin. These sites produced about 2,304 barrels of oil equivalent per day in the fourth quarter, according to a marketing document seen by Reuters.

The company had total production of about 183,000 boepd in the Eagle Ford in the fourth quarter, according to its quarterly earnings report. Read more

Reporting by Shariq Khan; Editing by Maju Samuel

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