ConocoPhillips Sells $2 Billion of U.S. Pipeline Assets
HOUSTON, Nov. 16, 2011 – ConocoPhillips [NYSE:COP] announced today that as part of its ongoing strategy to create shareholder value it has entered into agreements to sell its interests in two U.S. pipeline companies for a total of $2 billion.
ConocoPhillips has entered into definitive agreements with a subsidiary of Caisse de dépôt et placement du Québec (“CDPQ”) to sell its 16.55 percent interest in Colonial Pipeline Company and Colonial Ventures LLC (“Colonial”). The transaction is anticipated to close in the first quarter of 2012 following the completion of contractual Rights of First Refusal review by the existing shareholders in Colonial.
In addition, ConocoPhillips has entered into definitive agreements with Enbridge Holdings (Seaway) L.L.C., a subsidiary of Enbridge (U.S.) Inc., to sell its ownership interest in the Seaway Crude Pipeline Company (SCPC). The transaction is anticipated to close in December, subject to satisfaction of customary conditions precedent and completion of certain arrangements regarding other logistics services currently provided by SCPC to ConocoPhillips.
"These two sales of non-core pipeline assets are important components of our $15-20 billion divestiture program for the years 2010-2012. We are pleased that CDPQ and Enbridge have recognized the value of these quality assets," said Al Hirshberg, senior vice president, Planning and Strategy, ConocoPhillips. "Through September 2011, the 2010-2012 divestiture program has yielded proceeds from asset dispositions of $8 billion. Once closed, these two transactions, along with other sales already closed in the fourth quarter, would increase that total to approximately $10.5 billion, and strongly position us to accomplish our target by the end of 2012.”
The sale of the Colonial and Seaway interests is just one part of ConocoPhillips’ plan to create value for shareholders through a continued focus on disciplined capital investment, a strengthened financial position, improved returns on capital, and growth in shareholder distributions.
ConocoPhillips is an integrated energy company with interests around the world. Headquartered in Houston, the company had approximately 29,700 employees, $155 billion of assets, and $247 billion of annualized revenues as of September 30, 2011. For more information, go to www.conocophillips.com.