ConocoPhillips said on Thursday it has completed the sale of $1.7 billion of noncore Lower 48 assets in July, helping the U.S. oil producer reach its $5 billion asset disposition target ahead of schedule.
Here are some details:
* Asset sales have become a key step for large shale producers looking to streamline operations, strengthen balance sheets and boost shareholder payouts while prioritizing returns over production growth.
* The company disclosed the sale while reporting second-quarter results. It also announced the retirement of longtime CEO Ryan Lance and said CFO Andy O’Brien would take the helm, effective September 1.
* The company said the divestments were part of its efforts to streamline its portfolio and focus on core, higher-return assets.
* The company posted better-than-expected second quarter profit as stronger commodity prices and cost-cutting measures helped offset a decline in its output.
* In its earnings release, ConocoPhillips said it received $200 million in proceeds from noncore asset sales during the quarter and funded $3 billion of capital expenditures and investments.
(Reporting by Sumit Saha in Bengaluru; Editing by Shailesh Kuber)