ConocoPhillips (COP) - Get Report announced late Wednesday that it signed an agreement with Cenovus (CVE) - Get Report to sell its 50% non-operated interest in the Foster Creek Christina Lake oil sands partnership, and the majority of its western Canada Deep Basin gas assets, for a total of $13.3 billion.
ConocoPhillips Canada will maintain its operated 50% interest in the Surmount oil sands joint venture along with its 100% operated Blueberry-Mountey unconventional acreage position.
Total proceeds from the transaction total $13.3 billion before general agreements, consisting of the following considerations: $10.6 billion of cash, payable at closing; and 208 million Cenovus shares, valued at $2.7 billion on March 28, 2017.
"With this decision to sell a huge portion of its Canadian oil sands holdings to Cenovus, a smallish Canadian producer, for $10.6 billion in cash and $2.7 billion in stock, Conoco's admitting that its gigantic bet on the ever-higher price of oil is over," wrote Jim Cramer in a column Thursday morning on Real Money, TheStreet's premium service for active traders. "the company is giving up simply aren't all that profitable below $50.
Conoco shares were up about 7.3% premarket to $45.95 per share while Cenovus dropped about 9% premarket to $13.08. Cenovus has a market cap of about $11 billion.
Editor's note: This story was originally published at 5:42 pm ET on March 29 and has been updated to include comment from Jim Cramer.