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ConocoPhillips Exits Greater Sunrise Fields, Sells Stake

Zacks Equity Research
Investors need to pay close attention to Anadarko Petroleum (APC) stock based on the movements in the options market lately.
Investors need to pay close attention to Anadarko Petroleum (APC) stock based on the movements in the options market lately.

ConocoPhillips COP has raised proceeds of $350 million on completion of the sale of 30% stake in the Greater Sunrise Fields to the government of Timor-Leste.

Located in the Timor Sea, the Sunrise and Troubadour gas and condensate fields are collectively known as the Greater Sunrise Fields. The transaction includes ConocoPhillips’ interest in Production Sharing Contracts — 03-19 and 03-20 —as well as Retention Leases NT/RL2 and NT/RL4. Currently, Timor-Leste government holds 100% interest in Timor Sea gas and condensate fields.

In terms of production and proved reserves, ConocoPhillips — headquartered in Houston, TX — is the largest oil and gas exploration and production player in the world. The company’s operations are based in 17 countries that include the United States, Colombia, Chile, Norway and the U.K.

The bulk of acres that ConocoPhillips holds in the three big unconventional plays are rich in oil. These include the Eagle Ford shale, Delaware basin and Bakken shale plays. The company is planning to operate 10-11 rigs in these prolific plays through 2019.

From the three unconventional plays, the company projects compound annual production growth rate of more than 25% through 2019 from 2017. Notably, it estimates significant opportunities in the Eagle Ford shale. ConocoPhillips owns about 3,400 undrilled locations that could provide access to estimated potential reserves of around 2.3 billion barrels of oil equivalent.

ConocoPhillips’ capital expenditure budget for 2019 is $6.1 billion. The budget to be allocated to the Lower 48, Alaska, Canada, Europe and North Africa, Asia Pacific and Middle East as well as Others regions is about 51%, 20%, 8%, 11%, 8% and 2%, respectively.

Zacks Rank & Other Key Picks

Currently, ConocoPhillips sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked players in the energy space are Antero Resources Corporation AR, CrossAmerica Partners L.P. CAPL and SEACOR Holdings, Inc CKH. While Antero Resources and CrossAmerica Partners sport a Zacks Rank #1, SEACOR Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources is an independent explorer, primarily engaged in the acquisition and development of natural gas, natural gas liquids as well as oil resources in the Appalachian Basin. The company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters.

CrossAmerica Partners is involved in the wholesale distribution of motor fuels, comprising gasoline and diesel fuel. The partnership delivered an average positive earnings surprise of 452.2% in the last four quarters.

SEACOR Holdings is a diversified holding company, mainly focused on domestic and international transportation, logistics as well as risk management consultancy. The bottom line for 2019 is expected to inch up 1.7% year over year. The company delivered an average positive earnings surprise of 20.5% in the trailing four quarters.

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CrossAmerica Partners LP (CAPL) : Free Stock Analysis Report
SEACOR Holdings, Inc. (CKH) : Free Stock Analysis Report
Antero Resources Corporation (AR) : Free Stock Analysis Report
ConocoPhillips (COP) : Free Stock Analysis Report
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