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Friday, February 11, 2022

Conoco Rumored To Sell Permian Assets Valued At $1 Billion -- February 11, 2022

Link here.

  • 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

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It Could Have Been Worse


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