- Cash portion of proceeds will be used to reduce debt to $20 billion in 2017 and double existing share repurchase authorization to $6 billion
- Transaction significantly improves underlying financial and portfolio metrics
HOUSTON – ConocoPhillips (NYSE: COP) today announced it has signed a definitive agreement with Cenovus (TSX: CVE) (NYSE: CVE) to sell its 50 percent nonoperated interest in the Foster Creek Christina Lake (FCCL) oil sands partnership, as well as the majority of its western Canada Deep Basin gas assets, for total proceeds of $13.3 billion. ConocoPhillips Canada will retain its operated 50 percent interest in the Surmont oil sands joint venture and its operated 100 percent Blueberry-Montney unconventional acreage position.
Total proceeds for the transaction are $13.3 billion before customary adjustments, consisting of the following considerations:
- $10.6 billion of cash, payable at closing; and
- 208 million Cenovus shares, valued at $2.7 billion on March 28, 2017.