ConocoPhillips Sells More Than $1.7 Billion of Assets Ahead of Plan
Synopsis
ConocoPhillips reached its US$5 billion asset sale target ahead of schedule after completing a US$1.7 billion divestiture in July. The company also reported better-than-expected second-quarter earnings and announced a CEO transition.
Key Highlights
- In July, ConocoPhillips sold $1.7 billion in non-core Lower 48 assets.
- The company is ahead of schedule on its goal to sell $5 billion in assets.
- The device also helped the company to manage a better-than-forecast second quarter profit.
July data indicated ConocoPhillips had completed the sale of $1.7 billion in non-core Lower 48 assets, helping the US oil producer reach its $5 billion asset disposition target ahead of schedule.
CEO Transition and Quarterly Results
ConocoPhillips stated that the divestitures are in response to its portfolio management efforts and to concentrate capital on core, optimal return assets.
The firm also said longstanding CEO Ryan Lance will retire and Chief Financial Officer Andy O’Brien would step up from September 1 to the role of chief executive.
ConocoPhillips beat second-quarter profit expectations due to a stronger commodity price environment and cost actions in response to lower production. In its earnings relief, the company said it receive $200 million in a proceeds from non-core asset sales during the water. And the company also funded $3 billion of capital investments and expenditures.
Source: Reuters
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
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