“Opportunities to consolidate quality on the scale of these two companies do not come along often, so we are seizing this moment to create a company to lead the necessary transformation of our vital sector for the benefit for all stakeholders in the future,” ConocoPhillips CEO Ryan Lance said. Canada would account for the rest.ConocoPhillips is also a major natural gas marketer. With expiration looming later this week, the November Nymex contract climbed 5.3 cents to $3.024. ConocoPhillips “is adding enough Permian production to nip at the heels of ExxonMobil’s massive program. It ranked No. ConocoPhillips said on Monday it would buy Permian-focused driller Concho Resources for $9.7 billion, the largest shale deal this year as oil and gas … During a call with analysts, Lance said industry consolidation “is both necessary and inevitable” to address “the lack of scale, poor returns and, increasingly, the challenges and opportunities of environmental, social and governance matters.”. The deal with Concho, expected to close in early 2021, would give ConocoPhillips a huge production boost in the Permian, which stretches from West Texas to southeastern New Mexico. Under the terms of the merger, Concho investors would trade each existing share for 1.46 ConocoPhillips share, a 15% premium over the closing price on Oct. 13, when news of a pending deal was first reported. “And so, in the discussions, I think that’s more of what I hear, is around how to be more efficient. © 2020 Natural Gas Intelligence. Quotes displayed in real-time or delayed by at least 15 minutes. ©2020 FOX News Network, LLC. Spot gas prices surged at the…. ConocoPhillips on Monday agreed to buy U.S. shale oil producer Concho Resources Inc for $9.7 billion, as the energy sector continued to consolidate amid lower fuel prices and demand. Concho Resources has a market value of about $9.56 billion, while the market cap for ConocoPhillips is $36.22 billion. ConocoPhillips, Bloomberg reported, had been hinting about a potential deal for months. Concho has a history of acquisitions in the region and brings a considerable amount of incumbent Permian knowledge.”, ConocoPhillips “has proven itself as a leader in shale technology…The combination bodes well for the Permian’s longer-term outlook.”. ConocoPhillips on Monday announced it is taking over Concho Resources Inc. for $9.7 billion in stock, forming a giant in the Permian Basin that would rival the output of the biggest players in the nation’s most productive oilfield. The deal would elevate ConocoPhillips into a small pool of dominant players in the Permian, joining leaders such as Occidental Petroleum Corp. and Chevron Corp. ConocoPhillips pro forma production with Concho is estimated at more than 1.5 million boe/d.
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