ConocoPhillips is marketing Anadarko Basin assets it picked up through a $22.5 billion acquisition of Marathon Oil last year, Hart Energy has learned. (Source: Shutterstock.com)
ConocoPhillips is considering a sale of Midcontinent assets picked up through its Marathon Oil acquisition last year.
The company retained investment bank Moelis & Co. to market the Anadarko Basin assets, which are valued around $1 billion, a source familiar with the matter told Hart Energy.
ConocoPhillips assumed approximately 250,000 net acres in the Anadarko Basin through the $22.5 billion Marathon Oil deal, giving the E&P a stronger foothold in U.S. gas, the company said last year.
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Production from Marathon’s Oklahoma assets averaged 40,000 boe/d in the third quarter of 2024, according to investor filings. Anadarko gas output averaged 122 MMcf/d.
ConocoPhillips and Moelis & Co. declined to comment on the development, which was earlier reported by Reuters.
ConocoPhillips' marketing process comes as M&A experts say buyer interest is increasing in the Midcontinent, which has languished in the past decade because of low natural gas prices, a lack of investment and exits by major operators.
As natural gas prices have risen and demand grows to fuel LNG exports, buyers are considering Midcontinent M&A once again.
Privately held Validus Energy has been an active consolidator in the Midcontinent. In the past year, Validus has spent around $4 billion on Anadarko acquisitions from Citizen Energy, 89 Energy and Continental Resources. Most recently, Validus closed its acquisition of 89 Energy for $850 million in late March.
Gas buyers also want a piece of the Haynesville Shale. In February, hedge fund giant Citadel acquired Haynesville E&P Paloma Natural Gas for $1.2 billion.
This week, TG Natural Resources acquired a 70% stake in Chevron’s East Texas Haynesville assets for $525 million.
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Improving Gas Macro Heightens M&A Interest in Haynesville, Midcon
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