[ad_1]
ConocoPhillips (COP) purchased the Permian assets of Royal Dutch Shell (RDSA) in the context of the largest upstream cash flow transaction in three years. COP action has increased.
X
Conoco pays $ 9.5 billion for Shell’s approximately 225,000 net acres in the Delaware Basin in Texas, which is part of the Permian. Conoco sees production estimated in 2022 from averages of 200,000 bpd.
Shell said the proceeds from the transaction will be used to fund an additional $ 7 billion in distributions to shareholders.
The sale of Shell’s last Permian stakes comes after a Dutch court in May ruled that Shell was partly responsible for climate change and ordered the company to cut its carbon emissions by 45% by 2030 compared to 2019 levels.
Shares of Conoco closed up 4.4% on the stock market today. Shell’s US-listed shares climbed 3.75%. On Monday, COP stock fell 3.1% and RDSA stock fell 2.2%.
Crude oil prices rose a fraction on Tuesday after falling nearly 2% on Monday when the global market sold off.
Conoco buying spree
ConocoPhilips had a shale buying spree during the pandemic. In October, it bought Concho Resources for $ 12.3 billion, consolidating its stake as America’s largest independent producer.
“After patiently awaiting M&A opportunities during the land rush years of the shale boom, Conoco has been able to acquire prime Permian real estate at prices that appear to be attractively priced “said Andrew Dittmar, senior mergers and acquisitions analyst at Enverus.
Enverus estimates that Concho pays around $ 15,000 per acre for Shell’s position versus $ 60,000 per acre Western (OXY) paid for land nearby when it bought Anadarko in 2019.
Conoco also announced that it would increase its quarterly dividend from 43 cents per share to 46 cents, payable on December 1.
Follow Gillian Rich on Twitter for energy news and more.
YOU MAY BE INTERESTED IN:
Get the latest news on oil stocks and the energy industry
Oil stocks to buy: here are the market capitalization and US shale leaders
Catch the Next Big Winning Stock with MarketSmith
Market rally fades, but 3 stocks are approaching buy points; China, the Fed in the spotlight
[ad_2]
Source link