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ConocoPhillips to sell Barnett assets for $305 million
June 29, 2017 / 11:51 AM / 6 months ago

ConocoPhillips to sell Barnett assets for $305 million

(Reuters) - ConocoPhillips (COP.N) said it would sell its assets in the Barnett shale field in Texas to Miller Thomson & Partners LLC for about $305 million, as part of the largest U.S. independent oil producer’s efforts to reduce exposure to natural gas.

Logos of ConocoPhillips are seen in its booth at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan, April 4, 2017. REUTERS/Toru Hanai

The Barnett assets produced 11,000 barrels of oil equivalent per day (boed) in 2016, of which about 55 percent was natural gas and 45 percent was natural gas liquids, ConocoPhillips said in a statement on Thursday.

The oil producer said last month it would sell natural gas-heavy assets in San Juan basin to privately held Hilcorp Energy Co for about $3 billion and earlier agreed to sell oil sands and western Canadian natural gas assets to Cenovus Energy Inc (CVE.TO) for C$17.7 billion.

    ConocoPhillips has also marked other gas-weighted assets for sale, including some assets in the Anadarko basin and the Gulf of Mexico.

    The company said the Barnett shale deal, expected to close in the third quarter, may reduce its 2017 production forecast by less than 5 million barrels of oil equivalent per day (MBOED).

    ConocoPhillips said it does not expect any material impact to 2017 cash flow or its forecast as a result of the transaction.

    The company said it would take a non-cash impairment charge of about $400 million after taxes in the second quarter related to the sale.

    Reporting by John Benny in Bengaluru; Editing by Saumyadeb Chakrabarty and Anil D'Silva

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