Replies to post #561 on ConocoPhillips (COP)

[eFinanceMarkets]

ConocoPhillips to sell San Juan Basin assets for up to $3B

ConocoPhillips (NYSE:COP) agrees to sell its interests in the San Juan Basin in the southwestern U.S. to an affiliate of Hilcorp Energy for up to $3B.

The proceeds consist of $2.7B in cash and a contingent payment of up to $300M for a six-year term effective Jan. 1, 2018.

Including the recently announced sale of Canadian oil sands assets, COP says it is on track to more than $16B of total divestments in 2017.

[benfrankledger]

COP also cuts its estimate of how much it needs to spend each year to keep production flat to $3.5B from $4.5B, and the amount the company needs to spend to keep its various elements of production flat now averages less than $11/bbl.

"Conoco's progress to date is undeniable," Bloomberg's Liam Denning summarizes. "And with the oil market's horizon distinctly hazy, investors should be pleased with this new road-map."

[benfrankledger]

Approximately a year ago the company had a goal of selling off from $5 billion to $8 billion in assets over the next 3 years to boost shareholder value.

The purpose was to acquire $3 billion in stock and allocate most of the remaining proceeds to paying down its hefty debt load.