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Bloomberg
Concho Resources Inc. will buy rival shale oil producer RSP Permian Inc. in an $8 billion all-share deal, creating one of the largest producers in the region at the center of America’s energy boom.
The deal is the biggest ever in the Permian Basin, topping Exxon Mobil Inc.’s acquisition of assets from the Bass family for as much as $6.5 billion last year and Encana Corp.’s purchase of Athlon Energy Inc. for $7.1 billion in 2014. The Permian, which straddles West Texas and parts of New Mexico, is America’s most fertile shale play.
The move comes as oil majors and independents both focus spending in the region.
It “has the potential†to boost shares for small-cap drillers operating there, and may trigger a run on them by bigger producers, said Leo Mariani, an Austin-based analyst for NatAlliance Securities.