ConocoPhillips Plans $2B Asset Sale in Permian Basin
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 16 hours ago
0mins
Should l Buy COP?
Source: seekingalpha
- Asset Sale Initiative: ConocoPhillips is exploring the sale of approximately $2 billion worth of Permian Basin assets as part of a broader strategy to streamline its portfolio, with interest anticipated from both strategic and private equity buyers.
- Acquisition History: The assets, acquired over the years through deals with Concho Resources and Shell, are located in the Delaware Basin of the Permian, highlighting the company's focus on efficient asset allocation and management.
- Sales Target Progress: In its Q4 2025 earnings report, ConocoPhillips announced the completion of $3.2 billion in asset sales and remains on track to achieve its $5 billion sales target by the end of 2026, demonstrating its commitment to optimizing business operations.
- Market Reaction Expectations: Although discussions are still in the early stages, the market response to ConocoPhillips' asset sale is expected to be positive, potentially driving the company's stock price higher and enhancing its competitiveness in the energy sector.
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Analyst Views on COP
Wall Street analysts forecast COP stock price to rise
19 Analyst Rating
15 Buy
3 Hold
1 Sell
Moderate Buy
Current: 111.590
Low
98.00
Averages
115.67
High
133.00
Current: 111.590
Low
98.00
Averages
115.67
High
133.00
About COP
ConocoPhillips is an exploration and production company. Its Alaska segment primarily explores for, produces, transports and markets crude oil, natural gas and NGLs. The Lower 48 segment consists of operations located in the 48 contiguous states in the United States and the Gulf of Mexico. Canadian operations consist of the Surmont oil sands development in Alberta, the liquids-rich Montney unconventional play in British Columbia and commercial operations. The Europe, Middle East and North Africa segment consists of operations principally located in the Norwegian sector of the North Sea, the Norwegian Sea, Qatar, Libya, Equatorial Guinea and commercial and terminalling operations in the United Kingdom. Asia Pacific segment has exploration and production operations in China, Malaysia, Australia and commercial operations in China, Singapore and Japan. Other International segment includes interests in Colombia as well as contingencies associated with prior operations in other countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
ConocoPhillips Considers Sale of Permian Basin Assets
- Asset Sale Consideration: ConocoPhillips is reportedly considering the sale of some of its Permian Basin assets, valued at approximately $2 billion, as part of a broader portfolio streamlining strategy, likely attracting interest from both strategic and private equity buyers.
- Earnings Decline: The company reported Q4 2025 earnings of $1.4 billion, about 40% lower than the $2.3 billion reported in Q4 2024, with earnings per share at $1.17, but adjusted for one-time charges, it fell to $1.02, missing analyst estimates of $1.09, indicating pressure on profitability.
- Disposition Progress: ConocoPhillips completed $3.2 billion in asset dispositions in 2025 and is on track for a total of $5 billion in dispositions in 2026, reflecting the company's proactive approach to adjusting its asset portfolio in response to market dynamics.
- Market Sentiment Analysis: Despite a nearly 1% drop in COP shares at the time of reporting, retail sentiment on Stocktwits remained in the 'bullish' territory over the past 24 hours, indicating investor confidence in the company's future performance.
See More
ConocoPhillips Plans $2B Asset Sale in Permian Basin
- Asset Sale Initiative: ConocoPhillips is exploring the sale of approximately $2 billion worth of Permian Basin assets as part of a broader strategy to streamline its portfolio, with interest anticipated from both strategic and private equity buyers.
- Acquisition History: The assets, acquired over the years through deals with Concho Resources and Shell, are located in the Delaware Basin of the Permian, highlighting the company's focus on efficient asset allocation and management.
- Sales Target Progress: In its Q4 2025 earnings report, ConocoPhillips announced the completion of $3.2 billion in asset sales and remains on track to achieve its $5 billion sales target by the end of 2026, demonstrating its commitment to optimizing business operations.
- Market Reaction Expectations: Although discussions are still in the early stages, the market response to ConocoPhillips' asset sale is expected to be positive, potentially driving the company's stock price higher and enhancing its competitiveness in the energy sector.
See More
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- Oil Price Surge: Crude oil prices typically rally after geopolitical events, with data showing a median increase of over 18% three months post-event since 1939, indicating strong market reactions that could influence investor asset allocation strategies.
- Gold's Safe-Haven Appeal: Gold, traditionally viewed as a safe-haven asset, has seen a median gain of about 6% in the three months following the onset of a crisis, reflecting increased demand for secure investments despite heightened volatility attracting retail investors.
- Stock Market Stagnation: In contrast to oil and gold, U.S. stocks have added less than 5% during the same timeframe, indicating a relatively muted response from the stock market amid geopolitical tensions, which may affect investor confidence in equities.
- Market Reaction Patterns: A Barclays report highlights that the S&P 500 tends to experience modest gains the day before and on the day of significant geopolitical events, suggesting that the market anticipates such incidents, yet overall changes remain minimal, reflecting a cautious investor sentiment.
See More
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- Oil Price Stability: Following Trump's remarks, oil prices remained stable despite a more than 5% rally this week, reflecting market pricing in the risk of imminent U.S. military action, with WTI crude at $66.15 per barrel.
- Military Buildup: A significant U.S. military buildup is underway in the Middle East, with the USS Abraham Lincoln aircraft carrier stationed in the region and the USS Gerald Ford en route, which may further heighten tensions with Iran.
- Strait of Hormuz Significance: The Strait of Hormuz is a vital chokepoint for global oil trade, with over 14 million barrels per day passing through in 2025, accounting for a third of total worldwide seaborne oil exports, and any conflict could disrupt these crucial oil flows, impacting global markets.
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Oil Market Braces for Potential US-Iran Military Conflict
- Oil Price Surge: Oil prices have risen nearly 6% this week as the market prices in the risk of military action between the US and Iran, highlighting investor anxiety over potential disruptions to oil flows through the vital Strait of Hormuz.
- Strategic Significance: The Strait of Hormuz is a critical chokepoint for global oil trade, with over 14 million barrels passing through daily in 2025; any conflict could push prices above $100 per barrel, curbing demand and potentially triggering an economic downturn.
- Military Exercise Impact: Iran's Revolutionary Guard recently partially closed the Strait for military exercises, demonstrating its capability to shut down this crucial passage, which could lead insurers to refuse coverage for tankers, exacerbating market fears.
- US Response Strategy: The Trump administration may opt for limited military actions designed to avoid direct strikes on Iran's oil infrastructure; however, any conflict could prompt the market to reassess risks, especially as Iran may leverage economic instability ahead of the US midterm elections.
See More
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- Oil Price Fluctuations: International benchmark Brent crude futures traded 0.7% lower at $71.17 per barrel around 10:25 a.m. London time, despite reaching a six-month high in the previous session, indicating ongoing market concerns over supply risks in the Middle East.
- Escalating Military Tensions: Trump warned during the first meeting of his Board of Peace in Washington that “bad things” would happen if Iran fails to reach a deal, suggesting potential military action within the next 10 days, reflecting a hardline U.S. stance on the Iranian nuclear issue.
- Market Supply and Demand Analysis: Morgan Stanley's chief commodity strategist noted that while the global oil market is well supplied, concerns over Iran, significant stockpiling by China, and high freight rates are supporting prices, highlighting market sensitivity to future uncertainties.
- Geopolitical Impact: Barclays strategists observed that while equity markets have largely ignored geopolitical noise, rising U.S. military capabilities in the region have led to cautious market sentiment regarding potential short-lived conflicts with defined targets, as the administration prioritizes consumer affordability amid upcoming midterm elections.
See More
ConocoPhillips Considers Sale of Permian Basin Assets
- Asset Sale Consideration: ConocoPhillips is reportedly considering the sale of some of its Permian Basin assets, valued at approximately $2 billion, as part of a broader portfolio streamlining strategy, likely attracting interest from both strategic and private equity buyers.
- Earnings Decline: The company reported Q4 2025 earnings of $1.4 billion, about 40% lower than the $2.3 billion reported in Q4 2024, with earnings per share at $1.17, but adjusted for one-time charges, it fell to $1.02, missing analyst estimates of $1.09, indicating pressure on profitability.
- Disposition Progress: ConocoPhillips completed $3.2 billion in asset dispositions in 2025 and is on track for a total of $5 billion in dispositions in 2026, reflecting the company's proactive approach to adjusting its asset portfolio in response to market dynamics.
- Market Sentiment Analysis: Despite a nearly 1% drop in COP shares at the time of reporting, retail sentiment on Stocktwits remained in the 'bullish' territory over the past 24 hours, indicating investor confidence in the company's future performance.
See More
ConocoPhillips Plans $2B Asset Sale in Permian Basin
- Asset Sale Initiative: ConocoPhillips is exploring the sale of approximately $2 billion worth of Permian Basin assets as part of a broader strategy to streamline its portfolio, with interest anticipated from both strategic and private equity buyers.
- Acquisition History: The assets, acquired over the years through deals with Concho Resources and Shell, are located in the Delaware Basin of the Permian, highlighting the company's focus on efficient asset allocation and management.
- Sales Target Progress: In its Q4 2025 earnings report, ConocoPhillips announced the completion of $3.2 billion in asset sales and remains on track to achieve its $5 billion sales target by the end of 2026, demonstrating its commitment to optimizing business operations.
- Market Reaction Expectations: Although discussions are still in the early stages, the market response to ConocoPhillips' asset sale is expected to be positive, potentially driving the company's stock price higher and enhancing its competitiveness in the energy sector.
See More
BofA Analyzes Asset Performance Post-Geopolitical Events
- Oil Price Surge: Crude oil prices typically rally after geopolitical events, with data showing a median increase of over 18% three months post-event since 1939, indicating strong market reactions that could influence investor asset allocation strategies.
- Gold's Safe-Haven Appeal: Gold, traditionally viewed as a safe-haven asset, has seen a median gain of about 6% in the three months following the onset of a crisis, reflecting increased demand for secure investments despite heightened volatility attracting retail investors.
- Stock Market Stagnation: In contrast to oil and gold, U.S. stocks have added less than 5% during the same timeframe, indicating a relatively muted response from the stock market amid geopolitical tensions, which may affect investor confidence in equities.
- Market Reaction Patterns: A Barclays report highlights that the S&P 500 tends to experience modest gains the day before and on the day of significant geopolitical events, suggesting that the market anticipates such incidents, yet overall changes remain minimal, reflecting a cautious investor sentiment.
See More
Trump Considers Limited Military Strikes Against Iran
- Military Action Consideration: Trump stated during a breakfast with governors that he is considering limited military strikes against Iran to pressure its nuclear program, with a decision expected in 10 to 15 days, potentially escalating tensions in the Middle East.
- Oil Price Stability: Following Trump's remarks, oil prices remained stable despite a more than 5% rally this week, reflecting market pricing in the risk of imminent U.S. military action, with WTI crude at $66.15 per barrel.
- Military Buildup: A significant U.S. military buildup is underway in the Middle East, with the USS Abraham Lincoln aircraft carrier stationed in the region and the USS Gerald Ford en route, which may further heighten tensions with Iran.
- Strait of Hormuz Significance: The Strait of Hormuz is a vital chokepoint for global oil trade, with over 14 million barrels per day passing through in 2025, accounting for a third of total worldwide seaborne oil exports, and any conflict could disrupt these crucial oil flows, impacting global markets.
See More
Oil Market Braces for Potential US-Iran Military Conflict
- Oil Price Surge: Oil prices have risen nearly 6% this week as the market prices in the risk of military action between the US and Iran, highlighting investor anxiety over potential disruptions to oil flows through the vital Strait of Hormuz.
- Strategic Significance: The Strait of Hormuz is a critical chokepoint for global oil trade, with over 14 million barrels passing through daily in 2025; any conflict could push prices above $100 per barrel, curbing demand and potentially triggering an economic downturn.
- Military Exercise Impact: Iran's Revolutionary Guard recently partially closed the Strait for military exercises, demonstrating its capability to shut down this crucial passage, which could lead insurers to refuse coverage for tankers, exacerbating market fears.
- US Response Strategy: The Trump administration may opt for limited military actions designed to avoid direct strikes on Iran's oil infrastructure; however, any conflict could prompt the market to reassess risks, especially as Iran may leverage economic instability ahead of the US midterm elections.
See More
Trump Warns Iran Over Nuclear Deal Negotiations
- Oil Price Fluctuations: International benchmark Brent crude futures traded 0.7% lower at $71.17 per barrel around 10:25 a.m. London time, despite reaching a six-month high in the previous session, indicating ongoing market concerns over supply risks in the Middle East.
- Escalating Military Tensions: Trump warned during the first meeting of his Board of Peace in Washington that “bad things” would happen if Iran fails to reach a deal, suggesting potential military action within the next 10 days, reflecting a hardline U.S. stance on the Iranian nuclear issue.
- Market Supply and Demand Analysis: Morgan Stanley's chief commodity strategist noted that while the global oil market is well supplied, concerns over Iran, significant stockpiling by China, and high freight rates are supporting prices, highlighting market sensitivity to future uncertainties.
- Geopolitical Impact: Barclays strategists observed that while equity markets have largely ignored geopolitical noise, rising U.S. military capabilities in the region have led to cautious market sentiment regarding potential short-lived conflicts with defined targets, as the administration prioritizes consumer affordability amid upcoming midterm elections.
See More
