ConocoPhillips Explores $2Bn Permian Basin Asset Sale
Synopsis
ConocoPhillips is considering selling Permian Basin oil and gas assets valued at about $2 billion, according to Bloomberg. The potential divestment follows the company’s $22.5 billion acquisition of Marathon Oil in 2024. No final…
ConocoPhillips is considering selling Permian Basin oil and gas assets valued at about $2 billion, according to Bloomberg. The potential divestment follows the company’s $22.5 billion acquisition of Marathon Oil in 2024. No final decision has been made, and ConocoPhillips declined to comment on the report.
Key Highlights
- ConocoPhillips reviewing sale of Permian Basin assets worth about $2 billion
- Assets located in top U.S. oil-producing region spanning Texas and New Mexico
- Company completed $22.5 billion Marathon Oil acquisition in 2024
- No final decision made; company may retain properties
ConocoPhillips is considering selling oil and gas resources within the Permian Basin, which may be worth approximately $2 billion. The deliberations belong to an internal portfolio review, and no decision is made.
The assets in question are in the Permian Basin, which is situated in West Texas and southeastern New Mexico. The area is the most expansive oil-producing basin in the United States. The statistics of the U.S. Energy Information Administration (EIA) indicate that the Permian contributes over 40% of the cumulative U.S. crude oil production, with over 6 million barrels a day being generated in recent months.
Portfolio Review Follows Major Acquisition
The possible divestiture follows the acquisition by ConocoPhillips of Marathon Oil in late 2024, which cost it 22.5 billion dollars. The acquisition extended the reach of ConocoPhillips in shale operations in the United States to add acreage in the Permian Basin, the Eagle Ford and the Bakken formations.
The common reason used by energy companies to sell non-core assets after a major acquisition is to simplify operations, deal with debt, and concentrate capital on more profitable ventures. ConocoPhillips has already indicated that it will exercise controlled capital expenditure and focus on shareholder returns.
Recently, ConocoPhillips wrote off annual figures of around 56 billion dollars in revenues. The company is among the largest of the independent oil and gas producers in the United States, and its operations are spread in North America, Europe, Asia and Australia.
The wider U.S. shale industry has experienced augmented acknowledgment of consolidation over the past few years, with manufacturers seeking scale and cost economies. The Permian Basin continues to be a focal point of the U.S. output growth because of its comparatively low production cost and a huge network of infrastructure.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
