Transaction Details: 

Shell Enterprises LLC, a subsidiary of Royal Dutch Shell plc, has reached an agreement for the sale of its Permian business to ConocoPhillips for $8.6 billion in cash (adjusted from $9.5 billion prior to closing).

The transaction will transfer all of Shell's interest in the Permian to ConocoPhillips, subject to regulatory approvals.

This deal closed on December 1, 2021.

Deal Details:

• Acreage: Approximately 225k net acres

• Production: Current production of around 175 MBOEPD

Morgan Stanley & Co. LLC and Tudor, Pickering, Holt & Co. are serving as Shell's financial advisors and Norton Rose Fulbright is serving as Shell's legal advisor for the divestment.

Wael Sawan, Upstream Director for Shell, commented: "After reviewing multiple strategies and portfolio options for our Permian assets, this transaction with ConocoPhillips emerged as a very compelling value proposition. 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."

The cash proceeds from this transaction will be used to fund $7 billion in additional shareholder distributions after closing, with the remainder used for further strengthening of the balance sheet. These distributions will be in addition to our shareholder distributions in the range of 20-30% of cash flow from operations. The effective date of the transaction is July 1, 2021 with closing expected in Q4 2021.

Permian Deal Activity In Last 12 Months