ConocoPhillips announced on Thursday a deal to sell its San Juan Basin assets for up to $3 billion to an affiliate of Hilcorp Energy.
Under terms of the deal, ConocoPhillips will receive $2.7 billion in cash and a contingent payment of up to $300 million, effective January 1, with a term of six years.
ConocoPhillips said it plans to use the proceeds from the deal for general corporate purposes. The exploration and production company said 2016 production from its San Juan Basin assets was 124,000 barrels of oil equivalent per day, the majority of which was natural gas.
“This transaction significantly accelerates value from our San Juan Basin assets,” said Chief Executive Ryan Lance. “Including our recently announced Canadian asset sales, we have line of sight to more than $16 billion of total considerations in 2017.”
Full Content: Market Watch
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