Summary
- ConocoPhillips announced an asset sale yesterday.
- The energy company said it will sell its U.K. subsidiaries for $2.7 billion.
- I discuss the transaction and what it means for investors.
- An investment in COP yields 1.9 percent.
ConocoPhillips (COP) announced on Thursday that it will sell its U.K. subsidiaries to Chrysaor E&P Limited for $2.7 billion. The deal did not do much to move the needle on ConocoPhillips' share price yesterday, but the transaction is nonetheless streamlining the company's operations and shows shareholders that management is serious about non-core asset sales. An investment in COP at today's price point yields 1.9 percent.
ConocoPhillips - Transaction Update
On April 18, 2019 ConocoPhillips issued a press release informing the market that it was selling its U.K. oil and gas operations to a North Sea-focused oil and natural gas driller. The deal follows a recent announcement by Chevron Corp. (NYSE:CVX) to acquire Anadarko Petroleum Corp. (NYSE:APC). As per ConocoPhillips' press statement:
