ConocoPhillips Completes Purchase Of Remaining 50% Interest In Surmont From TotalEnergies EP Canada Ltd. For ~$2.7B Cash
Portfolio Pulse from Benzinga Newsdesk
ConocoPhillips has completed the purchase of the remaining 50% interest in Surmont from TotalEnergies EP Canada Ltd. for approximately $2.7 billion cash. The deal also includes future contingent payments of up to approximately $0.3 billion. ConocoPhillips now owns 100% of Surmont and will continue as operator. The company expects the transaction to enhance its returns-focused value proposition, improve its return on capital employed, lower its free cash flow breakeven, and deliver significant free cash flow for decades.
October 04, 2023 | 8:10 pm
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POSITIVE IMPACT
ConocoPhillips' acquisition of the remaining stake in Surmont is expected to enhance its returns-focused value proposition, improve its return on capital employed, lower its free cash flow breakeven, and deliver significant free cash flow for decades.
The acquisition of the remaining stake in Surmont is a significant move for ConocoPhillips. It not only gives the company full control over the asset but also enhances its returns-focused value proposition. This could potentially lead to an increase in the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
TotalEnergies EP Canada Ltd. has sold its remaining 50% stake in Surmont to ConocoPhillips for approximately $2.7 billion cash.
The sale of the remaining stake in Surmont by TotalEnergies EP Canada Ltd. to ConocoPhillips is a significant transaction. However, without additional information on how the proceeds will be used or the strategic implications of the sale, it's difficult to predict the short-term impact on the company's stock price.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50