Trump announces trade deal with EU following months of negotiations
HOUSTON - ConocoPhillips (BVMF:COPH34) (NYSE: NYSE:COP), currently trading near its 52-week low at $100.11, has reached an agreement to offload its stakes in the Ursa and Europa Fields, along with the Ursa Oil Pipeline Company LLC, to Shell (LON:SHEL) Offshore Inc. and Shell Pipeline Company LP for $735 million. The deal, announced Today, includes customary closing adjustments and an overriding royalty interest in the Ursa Field. According to InvestingPro analysis, the company appears undervalued based on its Fair Value calculations.
This strategic move is a part of ConocoPhillips’s broader plan to streamline its asset portfolio. The divestiture is in line with the company’s objective to meet a $2 billion disposition target, as stated by Andy O’Brien, senior vice president, Strategy, Commercial, Sustainability & Technology. The sale proceeds are earmarked for general corporate purposes.
In 2024, the company’s production from the 15.96% interest in the Ursa Field and 1% interest in the Europa Field was approximately 8 thousand barrels of oil equivalent per day (MBOED). The transaction is pending customary closing conditions and is expected to finalize by the end of the second quarter of 2025, with an effective date of January 1, 2025.
ConocoPhillips, headquartered in Houston, Texas, is a leading player in the global exploration and production sector, with a substantial market capitalization of $127.75 billion. As of December 31, 2024, the company boasted operations in 14 countries, total assets worth $123 billion, and a workforce of roughly 11,800. The past year’s production averaged 1,987 MBOED, and its proved reserves stood at 7.8 billion barrels of oil equivalent (BBOE). The company maintains strong profitability with an EBITDA of $24.31 billion and trades at an attractive P/E ratio of 12.79, while offering a dividend yield of 3.06%. For detailed financial analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro.
The company’s forward-looking statements are subject to various risks and uncertainties, including volatile commodity prices and market conditions, operational risks, environmental regulations, and broader economic and political factors. The company cautions that actual results may differ from expectations and emphasizes that forward-looking statements are not guarantees of future performance.
This transaction announcement is based on a press release statement and provides a glimpse into ConocoPhillips’s ongoing strategic repositioning within the energy sector.
In other recent news, ConocoPhillips reported earnings that exceeded expectations, with fourth-quarter results coming in roughly 8% higher than analyst projections. The company also surpassed its production guidance, particularly in the Lower 48 states, which saw a 5% year-over-year growth. Following its acquisition of Marathon Oil (NYSE:MRO), ConocoPhillips received exemptive relief from Canadian securities requirements, allowing it to adhere to U.S. disclosure practices instead. Truist Securities maintained a Buy rating on ConocoPhillips, citing the company’s operational efficiencies and asset sales strategy aimed at enhancing its portfolio. In contrast, Raymond (NSE:RYMD) James downgraded the stock from Strong Buy to Outperform, adjusting the price target to $124 due to a weaker commodity price environment. Barclays (LON:BARC) also revised its price target slightly to $135, maintaining an Overweight rating and highlighting the company’s strong free cash flow growth narrative. Meanwhile, JPMorgan raised its price target to $127 and continued to hold an Overweight rating, noting ConocoPhillips’ commitment to returning $10 billion to shareholders if current commodity prices persist. These developments reflect a period of strategic adjustments and financial performance for ConocoPhillips, with various analysts offering differing perspectives on the company’s outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.