ConocoPhillips Buying Remaining 50% Stake of Surmont Project
May 26 2023 - 1:09PM
Dow Jones News
By Chris Wack
ConocoPhillips said Friday that it is exercising its preemption
right to buy the remaining 50% interest in Surmont from
TotalEnergies EP Canada for $3 billion, as well as contingent
payments of up to $325 million.
ConocoPhillips currently holds a 50% interest as operator of
Surmont and will own 100% upon closing.
The Surmont project is a producing oil sands field located in
Alberta, Canada.
The transaction is expected to close in the second half of 2023,
with an effective date of April 1, and will be funded from either
cash, short- and medium-term financing, or a combination of
both.
Based on $60 WTI, the transaction will add $600 million of
annual free cash flow in 2024, inclusive of $100 million of annual
capex for maintenance and pad development costs.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
May 26, 2023 12:54 ET (16:54 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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