Insight: ConocoPhillips Made Shell Permian Deal with Cash, ‘Patience’

After patiently waiting through the shale land rush, Enverus’ Andrew Dittmar says ConocoPhillips is picking up prime real estate in the Permian Basin with its blockbuster purchase from Shell.

Insight: ConocoPhillips Made Shell Permian Deal with Cash, ‘Patience’

The $9.5 billion cash acquisition of Shell’s Permian business includes ownership in approximately 225,000 net acres located entirely within the Delaware Basin in West Texas. (Source: ConocoPhillips Co.)

Royal Dutch Shell Plc grabbed headlines on Sept. 20 with the European supermajor’s exit from U.S. shale through the divestiture of its Permian Basin business.

However, despite the significance of the deal for Shell’s energy transition strategy, the true winner of the $9.5 billion cash transaction, according to Enverus’ Andrew Dittmar, was the patience of the buyer—Houston-based ConocoPhillips Co.

“After waiting patiently on M&A opportunities through the land-rush years of the shale boom, Conoco has been able to pick up prime Permian real estate at what looks to be attractive price points,” said Andrew Dittmar, senior M&A analyst at the firm.

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.