ConocoPhillips is in talks to sell Marathon Oil’s Oklahoma assets to Stone Ridge Energy for around $1.3 billion.
The parties are in advanced discussions for the Anadarko Basin assets, but a deal is not guaranteed, multiple sources told Hart Energy.
Private E&P Flywheel Energy, which is backed by Stone Ridge, would operate the Oklahoma assets if a deal is closed.
ConocoPhillips declined to comment. Hart Energy has reached out to Stone Ridge and Flywheel for comment.
The marketed Marathon Oil package includes approximately 300,000 net acres in Oklahoma’s SCOOP and STACK plays. Recent production from the assets averaged around 39,000 boe/d (~50% natural gas), sources said.
ConocoPhillips picked up the legacy Oklahoma assets through its $17.1 billion acquisition of Marathon Oil last year. When announcing the deal, ConocoPhillips laid out plans to raise $2 billion for debt reduction through non-core asset sales.
ConocoPhillips tapped financial advisory firm Moelis & Co. to market the Oklahoma assets, Hart Energy reported in April.
Over the past decade, the Anadarko Basin has taken a backseat role to more prominent U.S. plays, like the Permian, Haynesville and Appalachia.
Falling oil prices and overleveraged balance sheets pushed several Oklahoma E&Ps into bankruptcy, while many others exited the basins in pursuit of better returns.
A few producers stuck with the Anadarko through the downturn, like Continental Resources, Devon Energy and Marathon Oil, which has been active in Oklahoma for well over a century.
Validus, backed by Elliott Asset Management, has deployed more than $3 billion into Anadarko Basin M&A over the past year.
Private E&P Canvas Energy has also explored a sale of its Midcontinent assets. Canvas, which rebranded from Chaparral Energy in 2022, held 223,000 net acres in the Anadarko as of second-quarter 2024, according to investor materials.
Camino Natural Resources had been exploring a sale in the range of $2 billion but has pulled back from a marketing process, sources told Hart. Denver-based Camino holds approximately 135,000 net acres in the core of the Anadarko and is one of the top producers in Oklahoma. Camino is sponsored by private equity firm NGP.
Investment firm Stone Ridge Energy has a growing U.S. upstream arm. Stone Ridge announced its acquisition of Wincoram Asset Management earlier this year, adding deeper upstream exposure.
Terra was the top Piceance gas producer as of December 2024, with gross operated production of over 550 MMcf/d, according to an Energy Advisors Group (EAG) analysis.
Terra, QB Energy and Laramie are among the top gas producers in Colorado’s Piceance Basin. (Source: Energy Advisors Group)
Flywheel is also a major producer in Arkansas’ Fayetteville Shale gas play.
Last year, international commodities trading firm Gunvor reportedly acquired a 41.67% stake in Flywheel’s holding company, securing marketing rights to 500 MMcf/d of production.
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