In the first of two multi-billion-dollar transactions this week, Houston-based ConocoPhillips and Midland-based Concho Resources said Monday they agreed to combine in an all-stock transaction valued at $9.7 billion, not including Concho’s net debt of $3.9 billion. The combined company will be the nation’s largest independent oil and gas company with production of more than 1.5 million boed. Estimated resource base is 23 billion boe across contiguous, complementary acreage in Delaware and Midland basins and also Eagle Ford and Bakken in U.S. and Montney in Canada. Concho pumped 319,000 barrels in Permian Basin in 2020Q2 – about six times Conoco’s production.
Ryan Lance, ConocoPhillips chairman and CEO, said, “Concho is a tremendous fit with ConocoPhillips. Together ConocoPhillips and Concho will have unmatched scale and quality….” Their announcement said they expect “to capture $500 million of annual cost and capital savings by 2022.” The transaction is expected to close in 2021Q1.