Energy - SEPTEMBER 21, 2021

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Shell signs agreement to sell Permian interest for $9.5b to ConocoPhillips

by Andrea Zander

Shell Enterprises LLC, a subsidiary of Royal Dutch Shell, has reached an agreement for the sale of its Permian business to ConocoPhillips, a shale developer in the Permian Basin, for $9.5 billion in cash. The transaction will transfer all of Shell's interest in the Permian to ConocoPhillips, subject to regulatory approvals.

The assets include approximately 225,000 net acres and producing properties located entirely in Texas, as well as more than 600 miles of operated crude, gas and water pipelines and infrastructure. Estimated 2022 production from these assets is expected to be approximately 200 MBOED, roughly half of which is operated.

“We were presented with a unique opportunity to add premium assets at a value that meets our strict cost of supply framework and brings financial and operational metrics that are highly accretive to our multi-year plan,” said Ryan Lance, ConocoPhillips chairman and CEO. “Our financial strength allowed us to structure a competitive

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