ConocoPhillips Sells 50% Stake in Seaway to Enbridge, Citigroup Remains Neutral

Citigroup has published a research report on ConocoPhillips

after the company announced it's agreement to sell its interest in the Seaway to Enbridge

. In the report, Citigroup writes, "COP entered into an agreement to sell its 50% interest in the Seaway (Cushing to Houston) pipeline for $1.15 billion to Enbridge (

). This is much higher than our estimate of over $500 million that we outlined in our Brent-WTI exit strategy piece on November 1. Enbridge can now piece together a route for its Canadian customers from the Midwest to the Gulf of Mexico." Citigroup maintains its Neutral rating and $71 price target on ConocoPhillips, which is currently trading down $0.65 from yesterday's $71.99 closing price.