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.