ConocoPhillips Drops 3.38% on Potential Oklahoma Asset Sale

On April 3, 2025, ConocoPhillips experienced a 3.38% drop in pre-market trading, reflecting investor sentiment and potential market shifts.

ConocoPhillips is considering the sale of its oil and gas assets in Oklahoma, which were acquired from Marathon Oil for $225 billion last year. This move is part of the company's strategy to optimize its asset portfolio and reduce debt. The potential sale, valued at over $10 billion, aims to raise approximately $20 billion to alleviate the $54 billion debt incurred from the Marathon Oil acquisition. This financial maneuver is expected to enhance the company's flexibility and support future investments.

The assets up for sale are primarily located in the Anadarko Basin, covering about 300,000 net acres and producing around 39,000 barrels of oil equivalent per day, with half of that being natural gas. This production level makes the assets attractive to potential buyers, especially those with a long-term view on the growing demand for natural gas, driven by the expansion of data centers and their energy needs.

ConocoPhillips has already disposed of over $10 billion in assets since last year, focusing on enhancing its market position in key areas such as the Permian Basin, Eagle Ford Shale, and Bakken Shale. By divesting non-core assets, the company aims to concentrate resources on high-growth regions, thereby improving overall operational efficiency.

Industry experts view this decision as part of a broader trend where publicly traded companies are focusing on their core businesses to enhance competitiveness. As investors increasingly prioritize cash flow and financial stability, the liquidity and profitability of assets have become crucial factors in evaluating a company's value. Consequently, similar asset sales are likely to become more common.