RTTNews | Sep 20, 2021 07:30PM EDT

18:11 Monday, September 20, 2021 (RTTNews.com) - Shell Enterprises LLC, a subsidiary of Royal Dutch Shell plc (RDS-B, RDSB.L, RDSA.L, RDS-A) has agreed to sell its Permian business to ConocoPhillips (COP) for $9.5 billion in cash.

The deal will transfer all of Shell's interest in the Permian to ConocoPhillips, subject to regulatory approvals.

"After reviewing multiple strategies and portfolio options for our Permian assets, this transaction with ConocoPhillips emerged as a very compelling value proposition," said Wael Sawan, Upstream Director.

The company said it will use the proceeds to fund $7 billion in additional shareholder distributions with the remainder used for further strengthening of the balance sheet.

The deal is expected to close in fourth quarter of 2021.

Shell's Permian business includes ownership in around 225 thousand net acres with current production of around 175 thousand barrels equivalent per day.

Separately, ConocoPhillips said that it will fund the deal with available cash while still retaining a significant level of cash on the balance sheet for general purposes.

The company also announced a 7 percent increase in the company's quarterly dividend from $0.43 per share to $0.46 per share. The dividend is payable on December 1, 2021, to stockholders of record on October 28, 2021.

Read the original article on RTTNews ( https://www.rttnews.com/3226939/shell-to-sell-permian-biz-to-conocophillips-for-9-5-bln.aspx)

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