Shell has announced a deal to transfer its Permian operations to ConocoPhillips for $9.5 billion.
Shell, which has more than 15,000 employees nationwide and interests in all 50 states, announced the deal on Sept. 20. The transfer of interests between Shell to ConocoPhillips is subject to "regulatory approvals."
"After reviewing multiple strategies and portfolio options for our Permian assets, this transaction with ConocoPhillips emerged as a very compelling value proposition," Upstream director Wael Sawan said in a statement provided by Shell. "This decision once again reflects our focus on value over volumes as well as disciplined stewardship of capital. This transaction, made possible by the Permian team's outstanding operational performance, provides excellent value to our shareholders through accelerating cash delivery and additional distributions."
"Shell's U.S. portfolio of operated companies and interests consists of oil, natural gas, petrochemicals, gasoline, lubricants, and other refined products along with renewables such as wind, solar, and mobility options like electric vehicle charging and hydrogen," the press release said. "In the U.S. Shell is also investing in an integrated power business that will provide electricity to millions of homes and businesses."
Company officials stated that $7 billion of the cash funds provided by the deal will contribute toward additional shareholding distributions after closing.