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Shell Enterprises LLC, a subsidiary of Royal Dutch Shell plc, has completed the sale of its interest in the Permian to ConocoPhillips for $9.5B in...

Shell (RDS.A) to use the cash proceeds from the Permian asset sale to buy back up to $1.5 billion of shares from Dec 2, 2021 through Jan 28, 2022.

ConocoPhillips has acquired Permian assets in the US from Shell Enterprises, a unit of Royal Dutch Shell, for $9.5bn.

“This deal was justified on three key merits: it meets our rigorous cost of supply framework, we see a way to drive efficiencies from the assets, and the transaction makes our 10-year plan better,” said Ryan Lance, ConocoPhillips chairman and CEO.

ConocoPhillips has completed its acquisition of Shells prolific Delaware basin position for $9.5 billion in cash. Estimated 2022 production from these assets is expected to be approx. 200 MBOED, roughly half of which is operated.

The assets include around 225,000 net acres and producing properties located entirely in Texas.

Investegate announcements from Royal Dutch Shell plc, Shell completes sale of its Permian business to ConocoPhillips

ConocoPhillips has reported third-quarter 2021 earnings of $2.4 billion compared with a third-quarter 2020 loss of $0.5 billion. Excluding special items, third-quarter 2021 adjusted earnings were $2.4 billion compared with a third-quarter 2020 adjusted loss of $0.3 billion.

Despite analysts’ dire predictions about Covid-19’s short-term/long-term effects on the industry, demand and oil prices recovered significantly in second-and-third-quarter 2021. Even with consistently higher oil prices, U.S. operators showed uncharacteristic restraint, focusing on debt reduction and shrinking the DUC backlog rather than new drilling.

Despite analysts’ dire predictions about Covid-19’s short-term/long-term effects on the industry, demand and oil prices recovered significantly in second-and-third-quarter 2021. Even with consistently higher oil prices, U.S. operators showed uncharacteristic restraint, focusing on debt reduction and shrinking the DUC backlog rather than new drilling.