ConocoPhillips Drops 3.58% on Oklahoma Asset Sale Plan

On April 3, 2025, ConocoPhillips experienced a 3.58% drop in pre-market trading.

ConocoPhillips is considering the sale of its oil and gas assets in Oklahoma, which were acquired as part of the $22.5 billion purchase of Marathon Oil last year. The potential sale, valued at over $1 billion, is a significant step in the company's efforts to optimize its asset portfolio and reduce debt. This move comes as ConocoPhillips seeks to raise approximately $2 billion by divesting non-core businesses to alleviate the $54 billion debt burden incurred from the Marathon Oil acquisition. 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 Oklahoma assets attractive to potential buyers, especially those with a long-term bullish outlook on natural gas demand.

ConocoPhillips' strategy to sell these assets aligns with a broader industry trend where companies are focusing on their core businesses to enhance competitiveness. By divesting non-core assets, ConocoPhillips aims to concentrate resources on high-growth areas such as the Permian Basin, Eagle Ford Shale, and Bakken Shale, thereby improving overall operational efficiency. The company has already disposed of over $10 billion in assets since last year, reflecting its commitment to financial discipline and strategic asset management. However, potential market volatility and uncertainties, such as fluctuations in international oil prices and changes in climate policies, could impact future investments and project viability. Investors are advised to closely monitor global economic conditions and energy policy developments to mitigate risks associated with ConocoPhillips' asset sales.