ConocoPhillips is selling Anadarko basin assets for $1.3 billion, ahead of its target of selling $2 billion of assets this year and cementing its plan to rationalize its Lower 48 portfolio.
The transaction closing is expected in early Q4 2025, subject to standard closing adjustments. ConocoPhillips secured over $2 billion of disposition proceeds from asset disposition and increased its cumulative disposition target to $5 billion through 2026 end via this transaction.
We reported second-quarter financial, operating and strategic performance that was very strong," added Chairman and CEO Ryan Lance. "We completed integrating Marathon Oil and are in good position to capture more than $1 billion of synergies and more than $1 billion of one-time benefits.".
The Anadarko acquisition was disclosed with second-quarter results, when ConocoPhillips posted $2.0 billion net income, or $1.56 a share, and $1.8 billion adjusted earnings, or $1.42 a share. Average production in the second quarter of 2.391 MMboe/d increased 446 MMboe/d year over year, including 1.508 MMboe/d in the Lower 48.
Despite the higher production, the profits were weaker in the comparable quarter due to falling commodity prices and higher cost. The average realization price of Company was $45.77 per BOE, 19% lower than Q2 2024.
Other quarter highlights:
Marathon Oil integration completed, over $1 billion of run-rate synergies to be realized by year-end 2024.
$0.7 billion Ursa and related Gulf of Mexico asset sale proceeds.
$2.2 billion paid to shareholders in share repurchases of $1.2 billion and dividends of $1.0 billion.
Implementation of its global LNG strategy, with deals in France and Asia with start-up in 2028 on target.
ConocoPhillips is adjusting Q3 production 2.33 to 2.37 MMboe/d and confirming full-year guidance of 2.35 to 2.37 MMboe/d, after reported and closed dispositions.
The company declared a Q3 dividend of $0.78 a share payable Sept. 2 to record holders as of Aug. 18.