ConocoPhillips (NYSE: COP) is considering selling off oil and gas assets in Oklahoma, a move resulting from its recent $22.5 billion acquisition of Marathon Oil (NYSE: MRO). Sources familiar with the deal suggest the company is actively exploring this divestiture.

Details of Potential Sale

• Assets for Sale: Operations within the expansive Anadarko Basin, covering roughly 300,000 net acres.

• Estimated Value: More than $1 billion regarding these assets.

• Production Output: Approximately 39,000 barrels of oil equivalent daily—about half of which is natural gas.

• Investment Bank Involved: Moelis & Co is managing the sale process.

This sale process is in its nascent stages, and there are no guarantees of a deal. Potential buyers could include producers interested in capturing rising natural gas demand, specifically for power generation and data centers.

ConocoPhillips’ Strategic Direction

The potential asset sale aligns with ConocoPhillips’ broader goal of divesting non-core assets, aiming to raise $2 billion. Since finalizing the Marathon acquisition in November 2024, the company has already successfully sold over $1 billion worth of assets.

By divesting its Anadarko holdings, ConocoPhillips is gearing up to concentrate on its primary assets in the Permian, Eagle Ford, and Bakken basins, enhanced by the Marathon deal.