Two major energy companies, Occidental Petroleum and ConocoPhillips, announced earnings Wednesday, and both revealed upstream deal activity valued at more than $2 billion.
ConocoPhillips announced Q2 adjusted earnings of $1.42 per share and a $1.3 billion sale of assets in the Anadarko Basin.
Oxy announced adjusted earnings per diluted share of $0.39 while revealing $950 million in a series of upstream sales in the Permian.
Both companies said the moves were part of announced plans to lower debt from mega mergers closed last year — COP from its $22.5 billion acquisition of Marathon Oil, which closed in November; Oxy from its $12 billion purchase of CrownRock, which closed last August.
In its statement about the $1.3 billion transaction, ConocoPhillips said it has agreed to sell 300,000 net acres in the Anadarko shale formation to Flywheel Energy. Flywheel, based in Oklahoma City, is backed by Stone Ridge Energy. The assets produce about 39 million barrels of oil equivalent per day.
The company says it has surpassed the $2 billion mark in $5 billion of planned debt reductions.
Haynes Boone advised ConocoPhillips on the deal with a team led from Houston by partner Austin Elam along with counsel John Craven. The team also included associate Camie Carlock McKee, partner D.J. Beaty, associates Bradley Potts, Khalil Bryant and Hayley Hervieux along with tax counsel Danielle Marr.
For its part Oxy announced that it had sold $950 million in Permian Basin upstream assets in a series of four previously undisclosed transactions since the start of the second quarter. Approximately $370 million of those transactions, for what the company describes as “non-core” assets, have already closed.
According to the company’s disclosure, the deals also include a $580 million agreement with Enterprise Products Partners for gas gathering and processing assets in the Midland Basin.
The company says that it has repaid $7.5 billion of debt since July 2024.