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Sept. 20, 2021, 5:51 p.m. EDT

Shell to sell Permian assets to ConocoPhillips in deal worth $9.5 billion

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Cara Lombardo, Collin Eaton

Royal Dutch Shell PLC has agreed to sell all of its assets in the Permian basin, the most active U.S. oil field, to ConocoPhillips for around $9.5 billion in cash.

The deal, disclosed by both companies on Monday, comes as Shell /zigman2/quotes/205095589/composite RDS.A -1.19% is attempting to cut its carbon emissions and invest more in renewable energy. The sale is one of the largest recent transactions in the shale patch as large oil companies come under increasing pressure to diversify outside of fossil fuels.

The Wall Street Journal reported earlier Monday that such a transaction was imminent.

Shell said $7 billion of the proceeds will be returned to shareholders, while it will use the remainder to shore up its balance sheet. The European oil giant had acquired the bulk of its Permian assets in 2012 from Chesapeake Energy Corp.  /zigman2/quotes/224537584/composite CHK -1.41% for about $1.9 billion.

ConocoPhillips /zigman2/quotes/207605056/composite COP -1.88% said the assets, entirely in Texas, included about 600 miles of oil, natural-gas and water pipelines and other energy infrastructure. It declined to comment further on the deal Monday.

An expanded version of this report appears on WSJ.com.

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/zigman2/quotes/205095589/composite
US : U.S.: NYSE
$ 48.85
-0.59 -1.19%
Volume: 4.57M
Oct. 21, 2021 4:00p
P/E Ratio
34.55
Dividend Yield
2.60%
Market Cap
$191.29 billion
Rev. per Employee
$1.95M
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/zigman2/quotes/224537584/composite
US : U.S.: Nasdaq
$ 61.43
-0.88 -1.41%
Volume: 444,824
Oct. 21, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
2.24%
Market Cap
$6.12 billion
Rev. per Employee
$3.59M
loading...
/zigman2/quotes/207605056/composite
US : U.S.: NYSE
$ 74.59
-1.43 -1.88%
Volume: 5.84M
Oct. 21, 2021 4:00p
P/E Ratio
64.17
Dividend Yield
2.47%
Market Cap
$101.80 billion
Rev. per Employee
$1.93M
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