ConocoPhillips ($COP) Explores Sale of Permian Basin Assets
ConocoPhillips is reportedly exploring the sale of certain assets in the Permian Basin, US, valued at approximately $2 billion. The Houston-based company has engaged advisers to assist in this process and is actively seeking strategic investors and private equity firms as potential buyers.
Discussions regarding this potential sale are in the early stages, and there is no guarantee that a transaction will proceed. The assets under consideration are located in the Delaware Basin, part of the larger Permian Basin that spans West Texas and New Mexico. ConocoPhillips acquired these properties through previous transactions with Concho Resources and Shell.
In January 2021, ConocoPhillips completed its acquisition of Concho Resources, which included acreage across both the Delaware and Midland basins. Later that year, in December, the company purchased Shell Enterprises’ Delaware Basin operations for $9.5 billion, gaining approximately 225,000 net acres in Texas and more than 600 miles of operated pipelines and related infrastructure.
This potential divestment aligns with ConocoPhillips' broader efforts to streamline its portfolio following its $17 billion acquisition of Marathon Oil in 2024. Initially, the company identified around $2 billion in asset sales but increased that target to $5 billion in August.
Earlier this month, ConocoPhillips published its financial results for the fourth quarter (Q4) and full year of 2025. The company reported Q4 earnings of $1.4 billion, or $1.17 per share, down from $2.3 billion, or $1.90 per share, during the same period last year. Excluding special items, which primarily include gains on asset sales and restructuring costs, 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.
In its Q4 earnings release, ConocoPhillips noted it had closed $3.2 billion in asset sales during 2025 and remains on track to meet its $5 billion divestiture goal by the end of 2026. For FY25, reported earnings were $8 billion, or $6.35 per share, compared with $9.2 billion, or $7.81 per share, for 2024. 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.
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. The integration of Marathon Oil was completed during the year, with synergy capture now exceeding an annual run rate of $1 billion. The company also reported progress on new projects, including developments in Alaska and participation in liquefied natural gas ventures in Qatar and on the US Gulf Coast.
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