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Shell to Sell Permian Portfolio to ConocoPhillips for $9.5 Billion in Cash

Announced Date
September 20,2021
Deal Value $
9,500,000,000
Net Acres
225,000
Transaction Type
Property
Buyer
Seller
Price Per BOE $
40,000
Source Documents:
   Source Link
   Source Link
Location
Region
Permian

Country
United States

State
Texas

Play


Production
Production
175,000 Boe/d


Multiples
Production ($/boe/d)
54,286

$Price/Net Acre
42,222

$Price/Adj. Net Acre
11,111

Adj. $/acre is based on production @40,000 Boe/d

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 $9.5 billion in cash.

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

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



Other Permian Region's Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
Jun-09-2021 - - Click here New Mexico  E&P
May-20-2021 - - Click here Texas  E&P
Nov-30-2020 - - Click here Texas  E&P
Nov-09-2020 - - Click here Texas  E&P
Oct-21-2020 - - Click here Texas  E&P

Price History



Date Deal Headline Price$/acre
May-20-2021 Oasis Petroleum Sells Permian Asset to PE-Backed E&P for $450 Million - -
Sep-13-2019 Encap-backed Santa Elena Minerals Sells For $150 To Viper Energy - -
Sep-03-2019 Concho Sells New Mexico Shelf Assets to PE-Backed Spur for $925MM - -

Other Royal Dutch Shell Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
Feb-17-2021 - - Click here Alberta  E&P
Sep-09-2020 - - Click here   E&P
May-04-2020 - - Click here Pennsylvania  E&P
Jan-31-2020 - - Click here   E&P
Dec-30-2019 - - Click here Texas  E&P

Other ConocoPhillips Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
Jul-08-2021 - - Click here Wyoming  E&P
Oct-19-2020 - - Click here Texas  E&P
Jul-22-2020 - - Click here British Columbia  E&P
Mar-05-2020 - - Click here   E&P
Mar-05-2020 - - Click here Colorado  E&P