Recent market chatter suggests ConocoPhillips may be exploring the sale of certain Delaware Basin assets, potentially valued around $2 billion. On the surface, that kind of headline can read like a strategic pullback from one of North America’s most prolific shale plays.
But when you line that speculation up against what ConocoPhillips actually said on its most recent earnings call—and what its 2025 drilling data shows—the picture looks very different.
This isn’t an exit story. It’s a portfolio-shaping story.
What management actually said about the Delaware Basin
The earnings call language around the Delaware Basin was notably confident and operationally specific. Management repeatedly grouped the Delaware with ConocoPhillips’ highest-quality Lower 48 inventory, emphasizing depth, efficiency, and long runway rather than maturity or decline.
Key signals from the call:
- The Delaware is part of ConocoPhillips’ “two decades-plus of low-cost supply inventory” in the Lower 48.
- Management highlighted year-over-year productivity gains, not degradation.
- The focus remains on organic development, not divestment-driven contraction.
- Operational improvements are coming from spacing optimization, stacking strategies, and longer laterals, not simply higher capital intensity.
One detail stood out in particular:
ConocoPhillips reported ~8% year-over-year improvement in oil productivity per foot in the Delaware Basin, even as average lateral lengths increased ~9%. That combination matters—it implies real efficiency gains, not just longer wells masking declining rock quality.
In short, the Delaware Basin was discussed as a core manufacturing asset, not a non-core legacy position.
So why the sale speculation?
That’s where nuance matters.
Following the Marathon Oil acquisition, ConocoPhillips has been explicit about portfolio streamlining—high-grading acreage, simplifying development patterns, and recycling capital out of assets that don’t meet its long-term efficiency threshold.
That context strongly suggests any Delaware divestment would involve:
- Non-core or less contiguous acreage
- Positions that complicate long-lateral development
- Assets better suited to private equity or smaller operators
Not the core Delaware engine the company continues to invest in and optimize.
Delaware Basin drilling recap: what the data shows
To ground this discussion in facts, here’s what ConocoPhillips actually drilled in the Delaware Basin in 2025.
Total activity (2025)
- Total wells drilled: 144
- Total unique rigs: 11
This alone signals scale, discipline, and repeatability—hallmarks of a mature manufacturing program.
Wells drilled by county (2025)
| County | Wells Drilled | Unique Rigs |
|---|---|---|
| Lea, NM | 49 | 5 |
| Loving, TX | 35 | 6 |
| Eddy, NM | 26 | 3 |
| Culberson, TX | 13 | 3 |
| Reeves, TX | 13 | 3 |
| Ward, TX | 4 | 3 |
| Winkler, TX | 4 | 1 |
What this tells us:
Roughly 60% of all Delaware wells were drilled in Lea and Loving counties, confirming a tight core footprint rather than scattered step-out development.
Top rigs by well count (2025)
| Rank | Rig | Wells Drilled |
|---|---|---|
| 1 | Nabors 891 | 16 |
| 2 | Nabors X39 | 16 |
| 3 | Nabors X05 | 15 |
| 4 | Nabors X48 | 15 |
| 5 | Scan Quest | 14 |
| 6 | Ensign 145 | 13 |
| 7 | Nabors X31 | 13 |
| 8 | Nabors X04 | 12 |
| 9 | Nabors X09 | 12 |
| 10 | H&P 486 | 11 |
Rig takeaway:
This is a concentrated, repeat-rig program. No churn. No experimentation. Just consistent deployment across a small, trusted rig set—exactly what you’d expect in a core shale asset.
The real takeaway
If ConocoPhillips does sell Delaware Basin assets, the evidence strongly suggests it will be surgical, not strategic retreat.
The earnings call underscores:
- Improving productivity
- Longer laterals and falling cost of supply
- Continued capital allocation to core Delaware development
Meanwhile, the drilling data shows:
- High concentration in core counties
- Stable rig utilization
- Manufacturing-style execution
Put together, this looks less like a company backing away from the Delaware Basin—and more like one tightening its grip on the best parts of it.
