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ConocoPhillips (COP) to Sell Oil & Gas Assets in the U.S. - Analyst Blog

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Per a Reuters report, Houston-based oil and gas giant ConocoPhillipsCOP is preparing to divest some of its non-core oil and gas producing acreage in the United States.

According to sources, ConocoPhillips intends to sell some of its non-core oil and gas producing acreage in several areas in the U.S., including Texas.

The company has engaged Wells Fargo to divest some of its non-core assets in the U.S. Per the sources these assets comprise oil and gas properties in the Rockies, East Texas, South Texas and Northern Louisiana.

Although the sources did not reveal the value of the assets, Reuters reports that industry sources anticipate that the company would sell non-core assets valued between $1 billion and $2.5 billion in the U.S.

The above-mentioned assets sale represents the largest U.S. acreage sale by a U.S. major so far this year. Several such assets sale had been postponed earlier due to the decline in oil prices by more than 50% since last June.

This would be the second asset sale by ConocoPhillips initiated this year. Per investment bank Scotia Waterous' website, earlier, the company had engaged it for an asset sale in Canada.

Some of the other big companies have also begun to explore the prospects of a sale. Anadarko Petroleum Corp (APC) has put East Texas acreage up for sale with Citigroup Inc., according to sources. The asset sale is worth a few hundred million dollars. Anandarko and Citigroup representatives, however, did not disclose any details.

The news follows ConocoPhillips' announcement last week that it plans to reduce an unspecified number of jobs and cut operating costs by $1 billion per year by the end of 2016 while concentrating more on unconventional North American shale.

ConocoPhillips currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks from the oil and gas sector include Spectra Energy SE , Western Gas Equity Partners, L.P WGP and Hallador Energy Company HNRG . Each of these stocks sports a Zacks Rank #1 (Strong Buy).

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CONOCOPHILLIPS (COP): Free Stock Analysis Report

SPECTRA ENERGY (SE): Free Stock Analysis Report

WESTERN GAS EP (WGP): Free Stock Analysis Report

HALLADOR ENERGY (HNRG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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