ConocoPhillips plans sale of Texas, Oklahoma gas assets – sources

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U.S. shale oil producer ConocoPhillips 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’s acreage in Texas, ConocoPhillips took over rival Concho Resources 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.

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