We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ConocoPhillips Eyes $1B Sale of Oklahoma Oil & Gas Assets
Read MoreHide Full Article
ConocoPhillips (COP - Free Report) , the U.S. oil giant, is considering the sale of its oil and gas assets in Oklahoma, acquired through its $22.5 billion takeover of Marathon Oil last year, according to media reports. The potential sale, managed by investment bank Moelis & Co, is still in the early stages, with no guarantee of the deal being materialized.
The assets in question span approximately 300,000 net acres in the Anadarko Basin, a historically significant oil and gas region. These operations currently produce around 39,000 barrels of oil equivalent per day, with about half of that output being natural gas. The assets are expected to fetch more than $1 billion, making them a key part of ConocoPhillips’ broader strategy to streamline its portfolio and raise $2 billion through asset sales.
The move aligns with the company's ongoing efforts to optimize its asset base after acquiring Marathon Oil. As part of the deal, ConocoPhillips took on approximately $5.4 billion in Marathon’s debt. Since the acquisition's closing in November, the Houston-based energy giant has already sold off more than $1 billion worth of non-core assets.
Potential buyers could include producers looking to capitalize on the rising demand for natural gas, particularly from power generation for data centers. With energy consumption from data centers projected to surge in the coming years, natural gas assets like those in Anadarko could be attractive to operators seeking long-term growth in the sector.
While neither ConocoPhillips nor Moelis has commented on the matter, the deal (if it materializes) would further refine ConocoPhillips' portfolio, allowing the company to focus on higher-return assets in the Permian, Eagle Ford and Bakken basins — key regions strengthened by the Marathon acquisition.
COP’s Zacks Rank & Key Picks
Currently, ConocoPhillips carries a Zack Rank #3 (Hold).
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Kinder Morgan is a leading North American midstream player with a stable and resilient business model, largely driven by take-or-pay contracts, which ensure consistent earnings and facilitate reliable capital returns to shareholders. The company operates one of the largest natural gas pipeline networks, positioning it to benefit from the projected increase in U.S. natural gas demand by 2030.
W&T Offshore leverages its strong Gulf of Mexico assets, which offer low decline rates and significant untapped reserves. The company recently expanded its portfolio with six shallow-water field acquisitions, adding substantial proven and probable reserves. Focused on high-return organic projects, WTI has maintained positive cash flows for 27 consecutive quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ConocoPhillips Eyes $1B Sale of Oklahoma Oil & Gas Assets
ConocoPhillips (COP - Free Report) , the U.S. oil giant, is considering the sale of its oil and gas assets in Oklahoma, acquired through its $22.5 billion takeover of Marathon Oil last year, according to media reports. The potential sale, managed by investment bank Moelis & Co, is still in the early stages, with no guarantee of the deal being materialized.
The assets in question span approximately 300,000 net acres in the Anadarko Basin, a historically significant oil and gas region. These operations currently produce around 39,000 barrels of oil equivalent per day, with about half of that output being natural gas. The assets are expected to fetch more than $1 billion, making them a key part of ConocoPhillips’ broader strategy to streamline its portfolio and raise $2 billion through asset sales.
The move aligns with the company's ongoing efforts to optimize its asset base after acquiring Marathon Oil. As part of the deal, ConocoPhillips took on approximately $5.4 billion in Marathon’s debt. Since the acquisition's closing in November, the Houston-based energy giant has already sold off more than $1 billion worth of non-core assets.
Potential buyers could include producers looking to capitalize on the rising demand for natural gas, particularly from power generation for data centers. With energy consumption from data centers projected to surge in the coming years, natural gas assets like those in Anadarko could be attractive to operators seeking long-term growth in the sector.
While neither ConocoPhillips nor Moelis has commented on the matter, the deal (if it materializes) would further refine ConocoPhillips' portfolio, allowing the company to focus on higher-return assets in the Permian, Eagle Ford and Bakken basins — key regions strengthened by the Marathon acquisition.
COP’s Zacks Rank & Key Picks
Currently, ConocoPhillips carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. (AROC - Free Report) , Kinder Morgan, Inc. (KMI - Free Report) and W&T Offshore, Inc. (WTI - Free Report) . While Archrock presently sports a Zacks Rank #1 (Strong Buy), Kinder Morgan and W&T Offshore carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Kinder Morgan is a leading North American midstream player with a stable and resilient business model, largely driven by take-or-pay contracts, which ensure consistent earnings and facilitate reliable capital returns to shareholders. The company operates one of the largest natural gas pipeline networks, positioning it to benefit from the projected increase in U.S. natural gas demand by 2030.
W&T Offshore leverages its strong Gulf of Mexico assets, which offer low decline rates and significant untapped reserves. The company recently expanded its portfolio with six shallow-water field acquisitions, adding substantial proven and probable reserves. Focused on high-return organic projects, WTI has maintained positive cash flows for 27 consecutive quarters.