ConocoPhillips says it will sell its interests in the San Juan Basin of the Four Corners Region to Hilcorp San Juan LP, a partnership between Houston-based Hilcorp Energy Co. and Washington, D.C.-based private equity firm The Carlyle Group for up to $3.0 billion, including $2.7 billion in cash and a contingent payment of up to $300 million.

In late March, ConocoPhillips agreed to sell its 50% stake in the Foster Creek Christina Lake oil sands partnership to Cenovus for $13.3 billion. The deal included the majority of ConocoPhillips' western Canada Deep Basin gas assets.

Full-year 2016 production associated with the San Juan Basin assets was 124 thousand barrels of oil equivalent per day, of which approximately 80% was natural gas. Cash provided by operating activities for 2016 was approximately $0.2 billion. Year-end 2016 proved reserves were 0.6 billion barrels of oil equivalent.

The full-year 2017 estimated production is approximately 115 MBOED, made up of around 80% natural gas and 20% natural gas liquids.

As of Dec. 31, 2016, the net book value of the assets was nearly $6 billion. The transaction is subject to specific conditions precedent being satisfied, including regulatory approval, and is expected to close in the third quarter of 2017.

Hilcorp, founded in 1989, is one of the largest privately held independent oil and natural gas exploration and production companies in the United States.