In a blast of A&D activity, March delivered $24.3 billion in deals with one thing in common—major exits from Canadian oil sands.
By comparison, in 2016 all A&D value in the Delaware Basin totaled roughly $20 billion.
ConocoPhillips sold off 18% of its forecast production–280,000 barrels of oil equivalent per day—and the market loved it. The company’s share price closed up 8.8%, adding $5 billion to its market cap, Wood Mackenzie said.
ConocoPhillips’ deal—the largest E&P transaction since Shell purchased BG Group two years ago—is part of a larger exodus, Pavel Molchanov, an analyst at Raymond James, said in a March 30 report.
“Non-Canadian companies are exiting the oil sands one after the other,” he said.