Deal Insight
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:
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