100% Ownership and Green Goals: ConocoPhillips Buys Out Surmont Partner for 3B
ConocoPhillips (NYSE: COP) disclosed exercising its preemption right to purchase the remaining 50% interest in Surmont from TotalEnergies SE (NYSE: TTE) TotalEnergies EP Canada Ltd for approximately $3 billion (C$4 billion) and contingent payments of up to roughly $325 million (C$440 million).
ConocoPhillips currently holds a 50% interest as the operator of Surmont and will own 100% upon closing.
The transaction will likely close in the second half of 2023.
Based on $60 WTI, the transaction will add approximately $600 million of annual free cash flow in 2024, including about $100 million of yearly capex for maintenance and pad development costs.
Since 2016, Surmont's GHG emissions intensity has declined by about 20%, and ConocoPhillips plans for future emissions reduction by applying current and new technology.
ConocoPhillips held $8.9 billion in cash and equivalents as of March 31, 2023.
Price Action: COP shares are trading higher by 0.39% at $102.12 on the last check Friday. TTE shares traded higher by 0.61% at $59.66.
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This article 100% Ownership and Green Goals: ConocoPhillips Buys Out Surmont Partner for 3B originally appeared on Benzinga.com
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