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ConocoPhillips (COP - Free Report) is looking to divest Williston Basin oil assets, per Bloomberg. With oil price recovering from last year’s historic lows, companies with upstream presence are opting for shedding non-core assets, as they can fetch more cash now.
The company is reportedly expecting to receive $200 million for the assets, which are located in North Dakota and Montana. The upstream firm is looking for ways to streamline its portfolio and increase assets through profitable acquisitions whenever possible.
During early-2021, ConocoPhillips successfully acquired Concho Resources in an all-stock transaction, which was one of the largest oil accords in the United States. Markedly, ConocoPhillips has increased Concho Resources acquisition-related savings and synergies to $1 billion per annum from prior estimates of $500 million provided last October and $750 million announced in February 2021.
As reported by Reuters in June, integrated energy giant Royal Dutch Shell plc is contemplating the divestment of a portion or all of its interests in the Permian Basin, the most prolific shale play in the United States. ConocoPhillips is viewed as one of the potential buyers for Shell’s Permian Basin assets. This can give a further boost to its already strong presence in the famous basin. The company’s financial flexibility can certainly back up the upcoming acquisition plans.
As of Jun 30, 2021, the oil and gas giant had $6,608 million in total cash and cash equivalents, reflecting a massive jump from the first-quarter level of $2,831 million. The company had a total long-term debt of $18,805 million, down sequentially from $19,338 million. Hence, its massive liquidity position will likely enable it to carry out further asset purchases.
Price Performance
The upstream company’s shares have jumped 36.3% in the year-to-date period.
The Zacks Consensus Estimate for Range Resources’ earnings for 2021 is pegged at $1.53 per share, indicating a massive improvement from the year-ago loss of 9 cents.
Equinor’s bottom line for 2021 has witnessed three upward estimate revisions and no downward movement in the past 60 days.
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ConocoPhillips (COP) Eyes Williston Basin Assets Divestment
ConocoPhillips (COP - Free Report) is looking to divest Williston Basin oil assets, per Bloomberg. With oil price recovering from last year’s historic lows, companies with upstream presence are opting for shedding non-core assets, as they can fetch more cash now.
The company is reportedly expecting to receive $200 million for the assets, which are located in North Dakota and Montana. The upstream firm is looking for ways to streamline its portfolio and increase assets through profitable acquisitions whenever possible.
During early-2021, ConocoPhillips successfully acquired Concho Resources in an all-stock transaction, which was one of the largest oil accords in the United States. Markedly, ConocoPhillips has increased Concho Resources acquisition-related savings and synergies to $1 billion per annum from prior estimates of $500 million provided last October and $750 million announced in February 2021.
As reported by Reuters in June, integrated energy giant Royal Dutch Shell plc is contemplating the divestment of a portion or all of its interests in the Permian Basin, the most prolific shale play in the United States. ConocoPhillips is viewed as one of the potential buyers for Shell’s Permian Basin assets. This can give a further boost to its already strong presence in the famous basin. The company’s financial flexibility can certainly back up the upcoming acquisition plans.
As of Jun 30, 2021, the oil and gas giant had $6,608 million in total cash and cash equivalents, reflecting a massive jump from the first-quarter level of $2,831 million. The company had a total long-term debt of $18,805 million, down sequentially from $19,338 million. Hence, its massive liquidity position will likely enable it to carry out further asset purchases.
Price Performance
The upstream company’s shares have jumped 36.3% in the year-to-date period.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
ConocoPhillips currently has a Zacks Rank #1 (Strong Buy). Other top-ranked stocks from the energy space include Range Resources Corporation (RRC - Free Report) and Equinor ASA (EQNR - Free Report) , each having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Range Resources’ earnings for 2021 is pegged at $1.53 per share, indicating a massive improvement from the year-ago loss of 9 cents.
Equinor’s bottom line for 2021 has witnessed three upward estimate revisions and no downward movement in the past 60 days.