ConocoPhillips sells San Juan basin assets for $3 B
April 13 (Reuters) -- ConocoPhillips, the largest US independent oil producer, said on Thursday it would sell natural gas-heavy assets in San Juan basin to privately held Hilcorp Energy Co for about $3 B.
ConocoPhillips has been selling assets to reduce its exposure to profit-sapping natural gas assets and shore up its balance sheet.
The assets, which span New Mexico and Southwestern Colorado, produced 124,000 boed, about 80% of which was natural gas, ConocoPhillips said.
Conoco said last month it would sell oil sands and western Canadian natural gas assets to Cenovus Energy Inc for $13.3 B.
Conoco will receive $2.7 B in cash from the San Juan basin asset sale, which is expected to close in the third quarter.
The deal also includes a contingent payment of up to $300 MM.
Conoco, which said the assets being sold had a book value of about $5.9 B at 2016-end, expects to record an impairment charge in the second quarter.
Houston-based Hilcorp has a partnership with private equity firm Carlyle Group LP to acquire and develop North American oil and gas properties.
Reporting by Ahmed Farhatha in Bengaluru; Editing by Sriraj Kalluvila
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