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ConocoPhillips (COP) to Acquire Additional Waha Assets in Libya

ConocoPhillips COP received approval from the Libya government to acquire Hess Corporation’s HES stake in Waha Oil Company.

ConocoPhillips owns a 16.33% stake in the Waha concessions, located in the prolific Sirte Basin. Per the deal, COP will add a 4.08% stake to its existing assets in the Waha concessions. Libya's state-owned National Oil Corporation and Total Energies TTE are also involved in the current negotiation.

In the past few years, ConocoPhillips’ production activities in Libya and related oil exports have been frequently disrupted due to forced shutdowns of the Es Sider terminal. Libya's oil sector is willing to generate more interest from energy companies as its recent production recovery was hampered by insufficient funds.

Upstream firm Waha Oil usually produces 280,000-300,000 barrels per day (b/d), which feeds into the state's Es Sider grade. National Oil Corporation is the operator of the Waha concessions. With Libya crude production hovering around 1.2 million b/d in 2021, ConocoPhillips is set to expand operations in the state and increase production.

TotalEnergies will assist in restoring Libya’s oil production and the development of clean-energy projects. A memorandum of understanding has been signed between TotalEnergies and Libya’s General Electricity Company to develop solar photovoltaic projects, with a total capacity of 500 megawatts designed to supply electricity to the national grid.

TotalEnergies also agreed to invest in projects to reduce gas flaring in oilfields to supply gas to power plants. TTE will contribute to Libya’s goal of restoring oil production to 2 million barrels per day and supplying to world markets.

On its part, the latest agreement would end Hess’ extensive presence in Libya. In third-quarter 2021, Hess’ net production in Libya was 19,000 barrels of oil equivalent (boe) per day compared with zero in the year-ago quarter due to force majeure declared by National Oil Corporation.

Hess stated that it will continue focusing on the oil-rich Stabroek Block of Guyana as it holds a mother lode of opportunities. HES’ new discoveries in the Stabroek Block helped it increase the estimate of gross recoverable resource to 10 billion Boe from 9 billion Boe. The company reported 21 commercial discoveries in the block.

Company Profile & Price Performance

Headquartered in Houston, TX, ConocoPhillips is a leading upstream energy company.

Shares of COP have outperformed the industry in the past six months. The stock has gained 36.3% compared with the industry’s 29.3% growth.

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Zacks Rank & Other Stock to Consider

ConocoPhillips currently sports a Zack Rank #1 (Strong Buy).

Investors interested in the energy sector might look at the following stock that presently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Range Resources Corporation RRC, based in Fort Worth, TX, is an independent energy company that engages in the exploration, development and acquisition of oil and gas properties, primarily in the Appalachian Basin and North Louisiana. RRC is among the top 10 natural gas producers in the United States. It is among the top NGL producers in the domestic market. As of 2020 end, RRC’s total proved reserves were 17.2 trillion cubic feet equivalent.

In the past year, shares of Range Resources’ have increased 169.7% compared with the industry’s growth of 102.3%. In the past 60 days, the Zacks Consensus Estimate for RRC's 2021 earnings has been raised by 24%. RRC’s 2021 earnings are expected to surge 2,511.1% year over year. Range Resources witnessed five upward revisions in the past 30 days.

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ConocoPhillips (COP): Free Stock Analysis Report
Hess Corporation (HES): Free Stock Analysis Report
Range Resources Corporation (RRC): Free Stock Analysis Report
TotalEnergies SE Sponsored ADR (TTE): Free Stock Analysis Report
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