Deal Insight

Shell exits its Permian position to ConocoPhillips for US$9.5 billion

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01 October 2021

Shell exits its Permian position to ConocoPhillips for US$9.5 billion

Report summary

ConocoPhillips is buying Shell's Delaware basin assets for US$9.5 billion in cash. The divestment marks a turnaround for Shell. And we think the matter of scale was at the heart of the decision. Grinding consolidation dictates that you’re either a buyer or a seller, and once Shell decided it wasn’t going to be a buyer, there was only one outcome. ConocoPhillips, on the other hand, gained exactly the critical mass it was looking for.

Table of contents

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 15 images and tables including:

  • Executive summary: Table 1
  • Shell's Permian acreage with Shell, ConocoPhillips and Oxy wells
  • Upstream assets: Table 1
  • Shell: emissions intensity (2017-2026)
  • Shell: top emitting assets (lifetime absolute basis)
  • Deal analysis: Table 1
  • Deal analysis: Table 2
  • Permian asset: valuation sensitivity to price and discount rates
  • Deal analysis: Table 3
  • COP vs Shell: production and cash flow impact of accelerated spend
  • Shell: liquids production WM forecast vs guidance
  • Shell: WM free cash flow outlook (base case)
  • ConocoPhillips: post-acquisition asset breakeven vs remaining resource
  • Oil & gas pricing and assumptions: Table 1
  • Oil & gas pricing and assumptions: Table 2

What's included

This report contains:

  • Document

    Shell exits its Permian position to ConocoPhillips for US$9.5 billion

    PDF 1.20 MB