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ConocoPhillips (COP) Plans to Divest Gulf of Mexico Assets

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ConocoPhillips (COP - Free Report)  is looking to divest its stake in the Ursa platform and the Princess subsea well in the U.S. Gulf of Mexico, per a report by Reuters.

The divestment would mark the company’s exit from deepwater operations off the U.S. Gulf coast. ConocoPhillips hired a financial adviser to divest its 15.9% stake in the Ursa/Princess development.

In 2021, net production from the Ursa/Princess development averaged 13,700 barrels of oil equivalent per day. The divestiture is expected to be valued at hundreds of millions of dollars. The company has not yet signed an agreement and could retain the asset if a desirable offer is not secured.

ConocoPhillips has been divesting assets as it shifts to become a leading operator in the Permian Basin. Over the past two years, the company spent $23 billion in acquiring assets in the Permian Basin, the largest oil-producing shale play in the United States.

With the West Texas Intermediate crude prices currently hovering around $95 per barrel, the prospect of exploring potential divestments is favorable. ConocoPhillips has targeted $4-$5 billion in asset divestments by 2023-end. The recent sharp rise in commodity prices, which increased asset values, should be a tailwind for the company as it seeks to achieve the target. This will impact shareholders’ wealth positively.

ConocoPhillips currently carries a Zack Rank #3 (Hold). Investors interested in the energy sector might look at the following stocks that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Enterprise Products Partners (EPD - Free Report) is among the leading midstream energy players in North America. The partnership is also well-positioned to generate additional cash flow from under-construction growth capital projects worth $4.6 billion.

Enterprise Products Partners has witnessed upward earnings estimate revisions for 2022 in the past 30 days. The company currently has a Zacks Style Score of A for Growth and Momentum, and B for Value. EPD is expected to see earnings growth of 14.3% in 2022.

TotalEnergies SE (TTE - Free Report) is among the top five publicly traded global integrated oil and gas companies based on production volumes, proved reserves and market capitalization. TTE is managing long-term debt quite efficiently and trying to keep the same at manageable levels. Its debt to capital has been declining over the past few years.

TotalEnergies has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value, Growth and Momentum. TTE is expected to see earnings growth of 94.8% in 2022.

Eni SPA (E - Free Report) , based in Rome, Italy, is among the leading integrated energy players in the world. Eni expects its 2022 cash flow from operations, before changes in working capital at replacement cost, to grow to €16 billion.

Eni has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value, and B for Growth and Momentum. Eni is expected to see earnings growth of 142.5% in 2022.

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