ConocoPhillips (COP) Drops 3.06% on Oklahoma Asset Sale Plan

On April 3, 2025, ConocoPhillips experienced a 3.06% drop in pre-market trading, reflecting investor sentiment and market dynamics.

ConocoPhillips is considering the sale of its oil and gas assets in Oklahoma, which were acquired as part of the $225 billion purchase of Marathon Oil last year. This move is part of a broader strategy to optimize its asset portfolio and reduce debt. The assets in question are located in the Anadarko Basin, covering approximately 300,000 net acres and producing around 39,000 barrels of oil equivalent per day, with half of that being natural gas. The sale is expected to raise over $10 billion, which will help the company reduce its debt burden and gain financial flexibility.

The decision to sell these assets is driven by the company's goal to raise approximately $20 billion by divesting non-core businesses. This strategy aims to lower the debt incurred from the Marathon Oil acquisition, which amounted to around $54 billion. By selling these assets, ConocoPhillips can focus on more profitable and strategic areas, such as the Permian Basin, Eagle Ford Shale, and Bakken Shale, thereby enhancing its competitive position in these regions.

Industry experts note that this trend of focusing on core businesses and divesting non-core assets is becoming more prevalent among oil and gas companies. This approach not only helps in managing financial pressures but also allows companies to concentrate on areas with higher growth potential, thereby improving overall operational efficiency. The sale of these assets is expected to provide ConocoPhillips with the necessary funds to invest in future projects and maintain a strong financial position.