US oil producer ConocoPhillips (COP) is working towards dumping the stake it acquired last year in Calgary-based oil company Cenovus Energy, in a move to cut debts and boost its shareholders value.
Last year, ConocoPhillips had struck a deal with the company in which, it sold most of its oil and gas assets in a deal worth $13.3 billion ($10.6 billion cash and 208 million shares). At the time of the deal, the shares were worth $2.7 billion.
The latest reports from Reuters claim that the Houston-based company is in talks with investment banks to assist them in offloading their stake in Cenovus. This sale is expected to bring in $2 billion in cash.
ConocoPhillips is working towards dumping the stake it acquired last year in Calgary-based oil company Cenovus Energy.
Right from the start, ConocoPhillips had emphasized that it never intended to be a long-term holder. If the sale of the multibillion stake, which is expected to take place this month fails, the company then hopes to complete the sale by September.
ConocoPhillips, which recently acquired Alaska stake for $400 million, has been flawlessly executing its strategic plan. Over the past two years, the oil producer has been in a rush to sell off its assets, mainly to reduce costs, lower its debt burden and to keep its dividend payment rich.
During the recent first quarter, the company raised its dividend to $0.28 a share, up almost 8%. Last year, it offloaded assets that were worth $17 billion. The company even plans to buyback $2 billion in shares this year.
Most Popular
Intensity Therapeutics is establishing a new field of localized cancer reduction: CEO
Intensity Therapeutics, Inc. (NASDAQ: INTS) is a clinical biotechnology company engaged in the discovery development, and commercialization of first-in-class cancer drugs that attenuate tumors with minimal side effects while training
INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues
Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came
Riding the AI wave, Nvidia looks set to stay on the high-growth path
After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on