Houston-based ConocoPhillips (NYSE: COP.N) announced today they are preparing to sell more assets and this time it will be in the US according to Reuters. The company hired Wells Fargo & Co. (NYSE: WFC) to sell its gas producing and noncore oil land in Texas, Louisiana, and Colorado.
Industry insiders expect ConocoPhillips to sell between $1 billion and $2.5 billion of noncore assets in the US although details were not provided. A ConocoPhillips representative declined comment but did state, “It is common in the energy business for companies to review, readjust and optimize their portfolio from time to time.” Additionally, Wells Fargo declined to comment on the matter as well.
Oil prices have fallen more than 50 percent since last June and has resulted in many oil companies selling off assets. The sale would be the largest to date for this year in the US by a major oil and gas firm. Earlier this year the company enlisted investment bank Scotia Waterous (NYSE: BNS.TO) to sell off assets in Canada, according to their website. Last week ConocoPhillips announced plans to cut an unspecified amount of jobs to reduce operating cost by $1 billion annually by the end of 2016. The goal is to focus more on unconventional North American shale plays.
Other majors have also put hundreds of millions of East Texas acreage up for sale such as Anadarko Petroleum Corp (NYSE: APC.N) according to insiders close to the matter. Anadarko did not respond to reporters request for comment.