(Adds details, background)
April 13 ConocoPhillips, the largest
U.S. independent oil producer, said on Thursday it would sell
natural gas-heavy assets in San Juan basin to privately held
Hilcorp Energy Co for about $3 billion.
ConocoPhillips has been selling assets to reduce its
exposure to profit-sapping natural gas assets and shore up its
The assets, which span New Mexico and Southwestern Colorado,
produced 124,000 barrels of oil equivalent per day, about 80
percent of which was natural gas, ConocoPhillips said.
Conoco said last month it would sell oil sands and western
Canadian natural gas assets to Cenovus Energy Inc for
Conoco will receive $2.7 billion in cash from the San Juan
basin asset sale, which is expected to close in the third
The deal also includes a contingent payment of up to $300
Conoco, which said the assets being sold had a book value of
about $5.9 billion at 2016-end, expects to record an impairment
charge in the second quarter.
Houston-based Hilcorp has a partnership with private equity
firm Carlyle Group LP to acquire and develop North American oil
and gas properties.
(Reporting by Ahmed Farhatha in Bengaluru; Editing by Sriraj