- according to Bloomberg sources, Conoc has hired advisors to sell $1b+ worth of company assets in the Permian.
- this comes only months after Conoco acquired Shell's Permian position for $9.5b.
- when Conoco reported earnings earlier this month, CEO Lance voiced concern over accelerating shale production, and its potential impact on oil prices.
- Lance also indicated plans to high-grade the portfolio while keeping production flat in 2022.
- if the rumors prove to be true, it would be a chance for Lance and Conoco shareholders to cement value from higher prices, high-grade the portfolio, and ensure the Company is well positioned in the event of a return to mid-cycle oil prices.
Back-of-the-envelope:
- at $40,000 / acre = 25,000 acres
The $9.5 billion Shell deal, link here:
- 225,000 acres = $42,000 / acre
- 175,000 boepd = $54,000 / boepd
**********************************
It Could Have Been Worse
It can always be worse....
ReplyDeleteI think that's one of the funniest photos I've seen in awhile.
Delete