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Canada: ConocoPhillips completes sale of Foster Creek Christina Lake partnership interest and Western Canada Deep Basin gas assets to Cenovus
18 May 2017
ConocoPhillips has completed its previously announced transaction with Cenovus to sell its 50 percent non-operated interest in the Foster Creek Christina Lake (FCCL) oil sands partnership, as well as the majority of its western Canada Deep Basin gas assets. ConocoPhillips Canada retains its operated 50 percent interest in the Surmont oil sands joint venture and its operated 100 percent Blueberry-Montney unconventional acreage position.
'This transaction will make a significant and immediate impact by accelerating our value proposition,' said Ryan Lance, chairman and chief executive officer. 'We will achieve a step-function improvement in our balance sheet strength and the pace of our planned share repurchase program. Our focus on free cash flow generation and our clear allocation priorities put us in a strong position to deliver double-digit returns to shareholders through price cycles.'
The company has revised its second-quarter production guidance to 1,365 to 1,405 thousand barrels of oil equivalent per day, reflecting the partial quarter impact of this disposition.
Acquisition of Cenovus Common Shares
At closing, Cenovus issued 208 million common shares to ConocoPhillips as partial consideration for the disposition of the assets and ConocoPhillips now owns approx. 16.9 percent of the issued and outstanding Cenovus common shares. Prior to the transaction, neither ConocoPhillips nor its affiliates owned any Cenovus common shares.