) has agreed to sell off its wholly owned subsidiary, Trinidad
and Tobago Holdings LLC to the National Gas Company of Trinidad
and Tobago Limited (NGC). The divestiture will fetch Conoco a
total consideration of $600 million plus customary adjustments.
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Trinidad and Tobago Holdings LLC has a 39% stake in Phoenix Park
Gas Processors Limited (PPGPL), which operates a gas processing
and natural gas liquids fractionation facility situated at Point
Lisas, Trinidad. An after-tax gain of about $290 million is
expected to be recognized by ConocoPhillips.
The latest sale of non-core, midstream assets will strengthen and
streamline the ConocoPhillips portfolio as well as enhance the
strategic interests of both NGC and ConocoPhillips.
As part of its 2012-13 asset disposition program, ConocoPhillips
has announced estimated proceeds of about $14.1 billion from the
sale of nonstrategic assets, including this transaction.
As of Jun 30, 2013, the company received $3.8 billion in proceeds
from concluded sales, while the balance is expected by end of
2013. These proceeds will be used for general corporate purposes
and facilitate the company to proceed with existing growth
ConocoPhillips is a major global exploration and production
(E&P) company with operations and activities in 30 countries
that include the U.S., Canada, UK/Norway, China, Australia,
offshore Timor-Leste, Indonesia, Libya, Nigeria, Algeria, Russia
ConocoPhillips carries a Zacks Rank #3 (Hold). However, there are
other stocks in the oil and gas sector -
Range Resources Corp.
Susser Petroleum Partners LP
) - which hold a Zacks Rank #1 (Strong Buy) and are good