ConocoPhillips to acquire interest in Alaska assets for $400m

ConocoPhillips has signed an agreement to acquire Anadarko Petroleum’s 22% non-operated interest in the Western North Slope of Alaska, US, for $400m.

The deal also includes Anadarko’s interest in the Alpine pipeline.

Last year, the assets produced a gross daily output of 63,000 barrels of oil equivalent per day (boepd).

Additionally, ConocoPhillips will hold 100% interest in around 1.2 million acres of exploration and development lands, including the Willow discovery.

The closure of the transaction is conditional upon the receipt of regulatory approval.

The company has posted Q4 2017 profits of $1.6bn, boosted by the US tax reform and the settlement of Ecuador arbitration, compared with a net loss of $35m for the same period in 2016.

ConocoPhillips chairman and CEO Ryan Lance said: “Since the year began, we’ve paid down $2.25bn of additional debt, raised our quarterly dividend rate by 7.5%, increased our planned 2018 share buybacks to $2bn, and announced an attractive bolt-on transaction in a high-quality, legacy asset with significant exploration upside.

“We are focused on safely executing our 2018 operational and financial plan, which is designed to generate top-tier growth in free cash flow and production per debt-adjusted share, while delivering superior returns and a compelling payout to shareholders.”

Excluding operations in Libya, the company expects to achieve full-year 2018 production of 1,195mmboed to 1,235mmboed, representing a growth of 5% compared with full-year 2017 underlying production.

Capital expenditures for this year are expected to be $5.5bn.