ConocoPhillips completes $1.7bn asset sale, hits divestiture target early
ConocoPhillips said on Thursday it has completed the sale of $1.7-billion of noncore Lower 48 assets in July, helping the US oil producer reach its $5-billion asset disposition target ahead of schedule.
Asset sales have become a key step for large shale producers looking to streamline operations, strengthen balance sheets and boost shareholder payouts while prioritizing returns over production growth.
The company disclosed the sale while reporting second-quarter results. It also announced the retirement of longtime CEO Ryan Lance and said CFO Andy O’Brien would take the helm, effective September 1.
The company said the divestments were part of its efforts to streamline its portfolio and focus on core, higher-return assets.
The company posted better-than-expected second quarter profit as stronger commodity prices and cost-cutting measures helped offset a decline in its output.
In its earnings release, ConocoPhillips said it received $200-million in proceeds from noncore asset sales during the quarter and funded $3-billion of capital expenditures and investments.