ConocoPhillips Announces Agreement to Sell Barnett Assets

HOUSTON–(BUSINESS WIRE)–ConocoPhillips (NYSE: COP) today announced it has entered into a
definitive agreement to sell its interests in the Barnett to an
affiliate of Miller Thomson & Partners LLC for $305 million plus net
customary adjustments. Proceeds from this transaction will be used for
general corporate purposes.

Full-year 2016 production associated with the Barnett assets was 11
thousand barrels of oil equivalent per day (MBOED), of which
approximately 55 percent was natural gas and 45 percent was natural gas
liquids. Year-end 2016 proved reserves were approximately 50 million
barrels of oil equivalent.

As of May 31, 2017, the net book value of the assets was approximately
$0.9 billion. The company expects to record a non-cash impairment on the
assets in the second quarter of 2017. The transaction is subject to
specific conditions precedent being satisfied, including regulatory
approval, and is expected to close in the third quarter of 2017.

The impact to full-year 2017 production guidance is expected to be less
than 5 MBOED dependent on timing of closing. The company does not expect
any material impact to 2017 cash flow or its other 2017 guidance items
as a result of this transaction.

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About ConocoPhillips

ConocoPhillips is the world’s largest independent E&P company based on
production and proved reserves. Headquartered in Houston, Texas,
ConocoPhillips had operations and activities in 17 countries, $88
billion of total assets, and approximately 13,100 employees as of March
31, 2017. Production excluding Libya averaged 1,584 MBOED for the three
months ended March 31, 2017, and proved reserves were 6.4 billion BOE as
of Dec. 31, 2016. For more information, go to www.conocophillips.com.

CAUTIONARY STATEMENT FOR THE PURPOSES OF THE
“SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995

This news release contains forward-looking statements.
Forward-looking statements relate to future events and anticipated
results of operations, business strategies, and other aspects of our
operations or operating results. In many cases you can identify
forward-looking statements by terminology such as “anticipate,”
“estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,”
“potential,” “predict,” “should,” “will,” “expect,” “objective,”
“projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,”
“target” and other similar words. However, the absence of these words
does not mean that the statements are not forward-looking. Where, in any
forward-looking statement, the company expresses an expectation or
belief as to future results, such expectation or belief is expressed in
good faith and believed to have a reasonable basis. However, there can
be no assurance that such expectation or belief will result or be
achieved. The actual results of operations can and will be affected by a
variety of risks and other matters including, but not limited to our
ability to complete the sale of our Barnett assets (the Sale
Transaction) on the timeline currently anticipated, if at all; the
possibility that regulatory approvals for the Sale Transaction will not
be received on a timely basis, if at all, or that such approvals may
require modification to the terms of the Sale Transaction or our
remaining business; business disruptions during or following the Sale
Transaction, including the diversion of management time and attention;
the ability to deploy net proceeds from the Sale Transaction in the
manner and timeframe we currently anticipate, if at all; changes in
commodity prices; changes in expected levels of oil and gas reserves or
production; operating hazards, drilling risks, unsuccessful exploratory
activities; difficulties in developing new products and manufacturing
processes; unexpected cost increases; international monetary conditions;
potential liability for remedial actions under existing or future
environmental regulations; potential liability resulting from pending or
future litigation; limited access to capital or significantly higher
cost of capital related to illiquidity or uncertainty in the domestic or
international financial markets; general domestic and international
economic and political conditions; and changes in tax, environmental and
other laws applicable to our business. Other factors that could cause
actual results to differ materially from those described in the
forward-looking statements include other economic, business, competitive
and/or regulatory factors affecting our business generally as set forth
in our filings with the Securities and Exchange Commission. Unless
legally required, ConocoPhillips undertakes no obligation to update
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.

Contacts

ConocoPhillips
Daren Beaudo, 281-293-2073 (Corporate media)
[email protected]
or
Romelia
Hinojosa, 832-486-2316 (Local media)
[email protected]
or
Andy
O’Brien, 281-293-5000 (Investors)
[email protected]