ConocoPhillips has entered into a definitive agreement to sell its interests in the San Juan Basin to an affiliate of Hilcorp Energy Co. for up to $3 billion of total proceeds, comprising $2.7 billion in cash (subject to customary closing adjustments) and a contingent payment of up to $300 million. The contingent payment is effective Jan. 1, 2018, and has a term of six years.
Full-year 2016 production associated with the assets was 124,000 barrels of oil equivalent per day, approximately 80 percent of which was natural gas. Cash provided by operating activities for 2016 was approximately $0.2 billion. Year-end 2016 proved reserves were 0.6 billion barrels of oil equivalent.
As of Dec. 31, 2016, the net book value of the assets was approximately $5.9 billion. The transaction is subject to specific conditions being satisfied, including regulatory approval, and is expected to close in the third quarter of 2017.
For more information, visit www.cono cophillips.com or www.hilcorp.com.