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Bloomberg
ConocoPhillips agreed to buy Concho Resources Inc for about $9.7 billion in stock, the largest shale industry deal since the collapse in energy demand earlier this year and one that will create a heavyweight driller in America’s most prolific oil field.
Investors will get 1.46 Conoco shares for each Concho share, the companies said in a statement. The transaction represents a 15% premium over Concho’s closing price on October 13, the last trading session before Bloomberg News first reported the companies were in talks.
The pandemic-induced price crash and lackluster global economic recovery have accelerated the push
for consolidation across the shale patch, which is under severe financial strain after years
of debt-fuelled growth.