ConocoPhillips explores divestment of Permian Basin properties

Core Viewpoint - ConocoPhillips is considering the sale of certain assets in the Permian Basin valued at approximately $2 billion, with discussions in early stages and no guarantee of a transaction proceeding [1] Group 1: Asset Sale Considerations - The assets under review are located in the Delaware Basin, part of the larger Permian Basin spanning West Texas and New Mexico, acquired through previous deals with Concho Resources and Shell [2] - ConocoPhillips completed the acquisition of Shell Enterprises' Delaware Basin operations for $9.5 billion in December 2021, gaining approximately 225,000 net acres and over 600 miles of operated pipelines [3] - The potential divestment aligns with ConocoPhillips' broader efforts to streamline its portfolio following a $17 billion acquisition of Marathon Oil in 2024 [3] Group 2: Financial Performance - ConocoPhillips initially identified around $2 billion in asset sales but increased that target to $5 billion in August 2025 [4] - In Q4 2025, the company reported earnings of $1.4 billion, or $1.17 per share, down from $2.3 billion, or $1.90 per share, in the same period the previous year [4] - Adjusted Q4 earnings totaled $1.3 billion, or $1.02 per share, compared to $2.4 billion, or $1.98 per share, a year earlier [5] Group 3: Yearly Financial Overview - For FY25, reported earnings were $8 billion, or $6.35 per share, compared to $9.2 billion, or $7.81 per share, for FY24 [6] - Adjusted earnings for 2025 reached $7.7 billion, or $6.16 per share, compared to adjusted earnings of $9.2 billion, or $7.79 per share, for the preceding year [6] Group 4: Production and Integration - Production totals for 2025 included 2.38 million barrels of oil equivalent per day globally and 1.44 million barrels per day in the Lower 48 in the US [7] - The integration of Marathon Oil was completed during the year, with synergy capture exceeding an annual run rate of $1 billion [7]