ConocoPhillips, the third-largest U.S. oil company, expects to complete the spin-off of its downstream operations in mid-2012 and shareholders at the time the transaction is completed will receive one share in the new company for every two shares of ConocoPhillips they own.
Texas-based ConocoPhillips (COP) will put its chemicals and pipelines businesses into the new company. The new company will have $50 billion in assets, according to a presentation given by Conoco CEO Jim Mulva at the Barclays Energy Conference today in New York.
When the spin-off is complete, the exploration and production operation will become the largest independent U.S. oil and natural gas producer. Mulva added that his company will sell $4 billion in assets this year and $5 billion to $10 billion in assets next year. Asset sales may include ''non-strategic'' North Sea and North American assets as well as certain pipelines and non-producing assets, according to Bloomberg News.
After those sales, year-end production will be the equivalent of about 1.5 million barrels a day in 2012, down from 1.7 million last year, Bloomberg reported. Conoco is also planning to spend $10 billion on share repurchases next year.
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