Summary
ConocoPhillips has completed the sale of its 50 percent non-operated interest in the FCCL Partnership (including Foster Creek, Christina Lake, and Narrows Lake oil sands projects) and a majority of its western Canada gas assets (WCBU Assets) to Cenovus Energy Inc. The transaction closed on May 17, 2017, and was valued at $12.4 billion in cash, adjusted for certain items, plus 208,000,000 shares of Cenovus common stock. This divestiture marks a significant strategic shift for ConocoPhillips, indicating a move away from these Canadian oil sands and gas assets. The company will retain its operated 50 percent interest in the Surmont oil sands joint venture and its 100 percent operated interest in the Blueberry-Montney unconventional acreage in Canada. The filing also includes pro forma financial statements reflecting the impact of this disposition, providing investors with insight into the company's post-transaction financial structure.
Key Highlights
- 1Completion of sale of 50% non-operated interest in FCCL Partnership and majority of Western Canada gas assets (WCBU Assets) to Cenovus Energy Inc.
- 2Total transaction consideration includes $12.4 billion cash (net of adjustments) and 208,000,000 Cenovus common shares.
- 3Contingent payments from Cenovus are possible if Western Canadian Select (WCS) crude price exceeds CAD$52.00 per barrel for five years post-closing, with no stated cap.
- 4ConocoPhillips retains its operated 50% interest in the Surmont oil sands joint venture.
- 5ConocoPhillips retains its 100% operated interest in the Blueberry-Montney unconventional acreage in Canada.
- 6Company issued a press release on May 17, 2017, announcing the transaction completion.
- 7Unaudited pro forma condensed consolidated financial statements are furnished to reflect the impact of the disposition.