ConocoPhillips Announces Agreement to Sell Cedar Creek Anticline Properties for $1.05 Billion
ConocoPhillips (NYSE: COP) today announced it 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
Inc.′s principal operating subsidiary to sell ConocoPhillips′ properties
in the Cedar Creek Anticline, comprising approximately 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 Inc.
recognizes the value of these properties.?
ConocoPhillips expects to record a net earnings benefit of approximately
$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.
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About ConocoPhillips
Headquartered in Houston, Texas, ConocoPhillips had operations and
activities in 30 countries, $115 billion of assets, and approximately
16,700 employees as of Sept. 30, 2012. Production averaged 1.57 million
BOE per day for the nine months ended Sept. 30, 2012, and proved
reserves were 8.4 billion BOE as of Dec. 31, 2011. For more information,
go to www.conocophillips.com.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE 'SAFE HARBOR' PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release contains forward-looking statements.
Forward-looking statements relate to future events and anticipated
results of operations, business strategies, and other aspects of our
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forward-looking statements by terminology such as 'anticipate,'
'estimate,' 'believe,' 'continue,' 'could,' 'intend,' 'may,' 'plan,'
'potential,' 'predict,' 'should,' 'will,' 'expect,' 'objective,'
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'target' and other similar words. However, the absence of these words
does not mean that the statements are not forward-looking. Where, in any
forward-looking statement, the company expresses an expectation or
belief as to future results, such expectation or belief is expressed in
good faith and believed to have a reasonable basis. However, there can
be no assurance that such expectation or belief will result or be
achieved. The actual results of operations can and will be affected by a
variety of risks and other matters including, but not limited to,
changes in commodity prices; changes in expected levels of oil and gas
reserves or production; operating hazards, drilling risks, unsuccessful
exploratory activities; difficulties in developing new products and
manufacturing processes; unexpected cost increases; international
monetary conditions; potential liability for remedial actions under
existing or future environmental regulations; potential liability
resulting from pending or future litigation; limited access to capital
or significantly higher cost of capital related to illiquidity or
uncertainty in the domestic or international financial markets; and
general domestic and international economic and political conditions; as
well as changes in tax, environmental and other laws applicable to our
business. Other factors that could cause actual results to differ
materially from those described in the forward-looking statements
include other economic, business, competitive and/or regulatory factors
affecting our business generally as set forth in our filings with the
Securities and Exchange Commission. Unless legally required,
ConocoPhillips undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
ConocoPhillips
Daren Beaudo (media)
281-293-2073
daren.beaudo@conocophillips.com
or
Aftab
Ahmed (media)
281-293-4138
aftab.ahmed@conocophillips.com
or
Vladimir
R. dela Cruz (investors)
212-207-1996
v.r.delacruz@conocophillips.com
