) has entered into an agreement with leading Canadian exploration
and production company, Oando Energy Resources, to extend the date
of closing the proposed divestment of its Nigerian Upstream Oil and
Gas business. The new agreement extended the date for completion of
the transaction to Jul 31, 2014. Earlier the parties had expected
the transaction to be completed by Jun 2014.
The divestment proposal has already received the consent of the
Minister of Petroleum Resources of Nigeria. The purchase
consideration to be dished out by Oando Energy would be $1.65
billion in cash.
ConocoPhillips' recent performance was driven by a continued
portfolio shift to liquids and higher production from new
development programs, as well as upstream ventures in key projects.
However, this was partially offset by lower oil realizations.
ConocoPhillips is progressing on other North American shale plays,
including several emerging areas.
With leading positions in both natural gas and heavy crude oil
in North America, as well as a legacy presence in the North Sea and
growing exposure to lucrative international regions, ConocoPhillips
expects to replace reserves and sustain production growth over the
ConocoPhillips' focus on liquids-rich plays are gaining momentum
through the Eagle Ford, Bakken and Permian plays. The company is
also poised to benefit from a pipeline of projects in the Gulf of
Mexico (GoM), Malaysia, the liquefied natural gas (LNG) project in
Australia, the U.K., Norway, and the Canadian oil sands, apart from
the U.S. Lower 48 liquids-rich plays. Oil sands expansion projects
are also on track.
Ever since the company spun off its refining operations to
), in Apr 2012, it has delivered total shareholder returns of 22%.
With the spin-off, ConocoPhillips shifted its total focus to
upstream operations. Oil and gas prices thus play a major role in
determining its performance. The company plans to expand production
by maintaining its growth focus on reserves, through global
drilling programs in legacy assets, unconventional assets and major
ConocoPhillips' margin growth would also be aided by the
addition of higher-value products in its production mix. The
company expects to spend $16 billion on average annually and will
allocate 95% of its capital to investments that deliver
above-average margins. The company's recent activity targets
offshore prospects in Australia, Angola and Senegal, conventional
exploration in Norway and Indonesia, and unconventional exploration
in North America, Poland and Colombia.
ConocoPhillips currently holds a Zacks Rank #2 (Buy).
Better-ranked stocks in the oil and gas sector include
Matrix Service Co.
). Both sport a Zacks Rank #1 (Strong Buy).
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