ConocoPhillips is reportedly weighing the sale of oil and gas assets in Oklahoma, acquired through its $22.5 billion takeover of Marathon Oil last year, according to a Reuters exclusive citing unnamed sources. The potential divestment highlights the company’s ongoing efforts to streamline its portfolio and focus on high-priority regions.
Details of the Potential Sale
The Houston-based energy major has reportedly engaged investment bank Moelis & Co. to facilitate the sale, though discussions remain in preliminary stages, and no final decisions have been made. Among the assets under consideration are holdings in Oklahoma’s Anadarko Basin, which span approximately 300,000 net acres and produce roughly 39,000 barrels of oil equivalent per day (boe/d) —half of which is natural gas.
This move aligns with ConocoPhillips’ broader strategy to offload $2 billion in non-core assets following its acquisition of Marathon Oil, which also saddled the company with around $5.4 billion in debt. The Oklahoma assets could attract buyers eager to leverage growing natural gas demand, particularly from power-hungry sectors like AI data centers and industrial operations.
Post-Acquisition Portfolio Optimization
Since closing the Marathon Oil deal, ConocoPhillips has already divested more than $1 billion in assets, redirecting capital toward core growth areas such as the Permian Basin and Bakken shale play. The Oklahoma sale would mark another step in this strategic realignment.
In February, the company announced plans to boost shareholder returns by nearly $1 billion in 2024 after posting Q4 2024 adjusted earnings of $2.4 billion ($1.98/share), down from $2.9 billion ($2.40/share) a year earlier. Asset sales could further strengthen its financial position while allowing for reinvestment in higher-margin projects.
Market Implications and Industry Trends
The potential divestment comes as U.S. energy firms increasingly prioritize portfolio optimization* over aggressive expansion. With natural gas prices showing signs of recovery amid rising electricity demand, Oklahoma’s gas-weighted assets may appeal to regional operators or private equity-backed players.
Neither ConocoPhillips nor Moelis & Co. has publicly commented on the report. However, industry analysts suggest that additional asset sales could be forthcoming as the company sharpens its focus on long-term profitability and operational efficiency.