ConocoPhillips Sells South Texas Assets for $1.2 Billion; Royalty Income Implications for Social Security
ConocoPhillips (NYSE: COP) has sold a significant portion of its assets in South Texas, including 43,000 net acres from the Eagle Ford region, to Ensign Natural Resources II for $1.2 billion as part of ongoing asset pruning following its acquisition of Marathon Oil. The sale highlights how mineral owners can continue receiving oil royalties without those payments triggering Social Security's earnings test if they hold nonoperating interests. This allows landowners aged 63 or older to collect both early retirement benefits and royalty income simultaneously, provided the royalties are not tied to active business operations. However, it is important to note that while these royalties may avoid the earnings test, they remain taxable ordinary income and can push up to 85% of Social Security benefits into a higher tax bracket if total annual income exceeds $34,000.
Tickers: $COP
Topics: asset sales oil & gas royalties social security