HOUSTON – ConocoPhillips (NYSE: COP) today announced it has entered into a definitive agreement to sell its interests in the Barnett to an affiliate of Miller Thomson & Partners LLC for $305 million plus net customary adjustments. Proceeds from this transaction will be used for general corporate purposes.
Full-year 2016 production associated with the Barnett assets was 11 thousand barrels of oil equivalent per day (MBOED), of which approximately 55 percent was natural gas and 45 percent was natural gas liquids. Year-end 2016 proved reserves were approximately 50 million barrels of oil equivalent.
As of May 31, 2017, the net book value of the assets was approximately $0.9 billion. The company expects to record a non-cash impairment on the assets in the second quarter of 2017. The transaction is subject to specific conditions precedent being satisfied, including regulatory approval, and is expected to close in the third quarter of 2017.
The impact to full-year 2017 production guidance is expected to be less than 5 MBOED dependent on timing of closing. The company does not expect any material impact to 2017 cash flow or its other 2017 guidance items as a result of this transaction.