ConocoPhillips COP is looking to divest its natural gas-producing assets in the Anadarko Basin of North Texas and Western Oklahoma, per a report by Reuters.

The move comes as ConocoPhillips seeks to secure funds by offloading non-core assets. The assets to be divested involve both operated and non-operated leaseholds, and royalty interests in Oklahoma’s STACK and SCOOP shale plays. Notably, the Anadarko assets are operated by ConocoPhillips.

The Anadarko asset divestment could bring $200 million, while non-operated assets are expected to be valued at $100 million. The Anadarko asset comprises 261,200 net acres, producing around 8,000 barrels of oil equivalent per day (boe/d). The non-operated properties cover 17,700 net acres in Oklahoma, with a production capacity of 3,000 boe/d.

ConocoPhillips has invested around $23 billion to acquire Permian Basin assets in the past 18 months. In 2020, the company acquired rival Concho Resources for more than $13 billion. COP also spent $9.5 billion to acquire Shell's acreage in Texas.

In September 2021, ConocoPhillips raised its asset-divestment targets to $4-$5 billion by the end of 2023. The significant increase in energy prices should be favorable to reach the target as it boosted the company’s asset values.

ConocoPhillips started marketing the operated and non-operated properties, which it could divest to a single bidder or separate parties. If the company does not receive attractive offers, it could hold onto one or both packages. ConocoPhillips did not reveal any ongoing business development or commercial activities.

Company Profile & Price Performance

Headquartered in Houston, TX, ConocoPhillips is a leading upstream energy company.

Shares of COP have outperformed the industry in the past six months. The stock has gained 58.9% compared with the industry's 39.6% growth.

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Zacks Rank & Other Stocks to Consider

ConocoPhillips currently sports a Zack Rank #1 (Strong Buy).

Investors interested in the energy sector might look at the following companies that also presently carry a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.

Marathon Petroleum Corporation MPC is a leading independent refiner, transporter and marketer of petroleum products. Marathon Petroleum is expected to see earnings growth of 147.4% in 2022.

As of Dec 31, Marathon Petroleum had cash and cash equivalents of $5.3 billion. MPC repurchased shares worth $3 billion in the October-January period. Further planning to reward its shareholders, MPC announced a $5-billion buyback program.