100% Ownership and Green Goals: ConocoPhillips Buys Out Surmont Partner for 3B
Portfolio Pulse from Anusuya Lahiri
ConocoPhillips (COP) is set to acquire the remaining 50% interest in Surmont from TotalEnergies (TTE) for approximately $3 billion, with contingent payments of up to $325 million. The transaction is expected to close in H2 2023 and add around $600 million of annual free cash flow in 2024.
May 26, 2023 | 5:20 pm
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POSITIVE IMPACT
ConocoPhillips acquires 50% interest in Surmont from TotalEnergies for $3B, increasing ownership to 100% and boosting annual free cash flow by $600M in 2024.
The acquisition of the remaining 50% interest in Surmont will increase ConocoPhillips' ownership to 100%, providing full control over the asset. This is expected to add approximately $600 million of annual free cash flow in 2024, which is a positive development for the company and its investors.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
TotalEnergies sells its 50% interest in Surmont to ConocoPhillips for $3B, with contingent payments of up to $325 million.
TotalEnergies is selling its 50% interest in Surmont for $3 billion, which will provide the company with a significant cash inflow. However, the impact on the company's overall operations and stock price is uncertain, as it depends on how the proceeds will be used and the company's future plans.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 100