ConocoPhillips has entered into an agreement to sell its properties in the Cedar Creek Anticline for a total of $1.05 billion before customary adjustments.
ConocoPhillips has entered into an agreement with Denbury Resources' principal operating subsidiary to sell ConocoPhillips’ properties in the Cedar Creek Anticline, comprising approx. 86,000 net acres in southwestern North Dakota and eastern Montana. ConocoPhillips’ 2012 net production from these properties averaged 13 thousand barrels of oil equivalent per day through November. The sale does not include any of ConocoPhillips’ assets in the Bakken Formation, where ConocoPhillips owns 626,000 net acres, consisting of 207,000 net lease acres and 419,000 net mineral acres.
'This disposition represents further optimization of our portfolio. The transaction will allow us to focus our investments in North Dakota and Montana on our significant Bakken unconventional position,' said Don Wallette, executive vice president, Commercial, Business Development and Corporate Planning. 'We are pleased that Denbury Resources recognizes the value of these properties.'
ConocoPhillips expects to record a net earnings benefit of approx. $120 million after-tax in the fourth quarter of 2012. The transaction is expected to close in the first quarter of 2013. Including this transaction, the company has announced total asset sales of approximately $12 billion since the beginning of 2012. Proceeds from these divestitures will be used for general corporate purposes and allow the company to continue executing its existing growth programs and capture new opportunities for the future.
The proposed sale of these assets is part of ConocoPhillips’ plan to increase value for shareholders through portfolio optimization, focused capital investments that deliver growth in production and cash margins, improved returns on capital, and sector-leading shareholder distributions.