ConocoPhillips Completes $2.7 Billion Sale of United Kingdom E&P Subsidiaries
September 30 2019 - 08:30AM
Business Wire
ConocoPhillips (NYSE: COP) today completed its previously
announced transaction to sell two ConocoPhillips United Kingdom
(U.K.) subsidiaries to Chrysaor E&P Limited for $2.675 billion,
plus interest and customary adjustments. Together, the subsidiaries
indirectly held the company’s exploration and production assets in
the U.K., as well as approximately $1.8 billion in asset retirement
obligations. Proceeds will be used for general corporate
purposes.
“We are pleased that Chrysaor recognizes the value of our U.K.
exploration and production assets, and will continue their
development in the future,” said Ryan Lance, chairman and chief
executive officer. “Our business legacy in the U.K. reflects a
50-year history of achievement and operational excellence. Our
workforce there should be proud of their accomplishments, and we
look forward to maintaining our commercial trading business in
London and continuing as operator of the Teesside oil
terminal.”
In the first six months of 2019, production associated with the
U.K. assets sold was 72 thousand barrels of oil equivalent per day
(MBOED). There is no impact to third-quarter production guidance as
a result of the sale. The company will provide updated full-year
guidance to applicable items on the upcoming third-quarter
conference call. The company has posted an investor table that
summarizes the impact of this transaction at
www.conocophillips.com/investor.
In addition to announcing that it has completed the U.K.
transaction, ConocoPhillips also announced that it has discontinued
exploration activities in the Central Louisiana Austin Chalk trend.
The company will record approximately $120 million pre-tax to Lower
48 dry hole expense in the third quarter, primarily related to this
play. The company also expects to record a non-cash leasehold
impairment related to the acreage.
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About ConocoPhillips
ConocoPhillips is the world’s largest independent E&P
company based on production and proved reserves. Headquartered in
Houston, Texas, ConocoPhillips had operations and activities in 17
countries, $71 billion of total assets, and approximately 10,900
employees as of June 30, 2019. Production excluding Libya averaged
1,303 MBOED for the six months ended June 30, 2019, and proved
reserves were 5.3 BBOE as of Dec. 31, 2018. For more information,
go to www.conocophillips.com.
CAUTIONARY STATEMENT FOR THE PURPOSES
OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements as defined
under the federal securities laws. Forward-looking statements
relate to future events and anticipated results of operations,
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absence of these words does not mean that the statements are not
forward-looking. Where, in any forward-looking statement, the
company expresses an expectation or belief as to future results,
such expectation or belief is expressed in good faith and believed
to be reasonable at the time such forward-looking statement is
made. However, these statements are not guarantees of future
performance and involve certain risks, uncertainties and other
factors beyond our control. Therefore, actual outcomes and results
may differ materially from what is expressed or forecast in the
forward-looking statements. Factors that could cause actual results
or events to differ materially from what is presented include
changes in commodity prices; changes in expected levels of oil and
gas reserves or production; operating hazards, drilling risks,
unsuccessful exploratory activities; difficulties in developing new
products and manufacturing processes; unexpected cost increases or
technical difficulties in constructing, maintaining, or modifying
company facilities; legislative and regulatory initiatives
addressing global climate change or other environmental concerns;
investment in and development of competing or alternative energy
sources; disruptions or interruptions impacting the transportation
for our oil and gas production; international monetary conditions
and exchange rate fluctuations; changes in international trade
relationships, including the imposition of trade restrictions or
tariffs on any materials or products (such as aluminum and steel)
used in the operation of our business; our ability to collect
payments when due under our settlement agreement with PDVSA; our
ability to collect payments from the government of Venezuela as
ordered by the ICSID; our ability to liquidate the common stock
issued to us by Cenovus Energy Inc. at prices we deem acceptable,
or at all; our ability to complete our announced dispositions or
acquisitions on the timeline currently anticipated, if at all; the
possibility that regulatory approvals for our announced
dispositions or acquisitions will not be received on a timely
basis, if at all, or that such approvals may require modification
to the terms of our announced dispositions, acquisitions or our
remaining business; business disruptions during or following our
announced dispositions or acquisitions, including the diversion of
management time and attention; the ability to deploy net proceeds
from our announced dispositions in the manner and timeframe we
currently anticipate, if at all; potential liability for remedial
actions under existing or future environmental regulations;
potential liability resulting from pending or future litigation;
the impact of competition and consolidation in the oil and gas
industry; limited access to capital or significantly higher cost of
capital related to illiquidity or uncertainty in the domestic or
international financial markets; general domestic and international
economic and political conditions; changes in tax, environmental
and other laws applicable to our business; and disruptions
resulting from extraordinary weather events, civil unrest, war,
terrorism or a cyber attack; and other economic, business,
competitive and/or regulatory factors affecting our business
generally as set forth in our filings with the Securities and
Exchange Commission. Unless legally required, ConocoPhillips
expressly disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20190930005438/en/
Media Relations Daren Beaudo 281-293-1149
media@conocophillips.com
Investor Relations 281-293-5000
investor.relations@conocophillips.com
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