ConocoPhillips to Buy Concho Resources in $9.7 Billion All-Stock Transaction
19 Octobre 2020 - 1:58PM
Dow Jones News
By Dave Sebastian
ConocoPhillips is buying Concho Resources Inc. in an all-stock
transaction valued at $9.7 billion, at a time when the American
shale-drilling industry is facing a downturn after a historic crash
in oil prices amid the Covid-19 pandemic.
ConocoPhillips said the transaction would improve its
competitive position in the Midland basin.
The companies said each share of Concho Resources will be
exchanged for 1.46 shares of ConocoPhillips stock, reflecting a 15%
premium over closing share prices on Oct. 13, when Bloomberg News
reported on the impending deal.
The acquisition combines a resource base of about 23 billion
barrels of oil equivalent with less than $40 a barrel West Texas
Intermediate cost of supply and an average cost of supply below $30
a barrel WTI, the companies said.
The companies said they would have $500 million in annual cost
and capital savings by 2022. The transaction is expected to close
in the first quarter of 2021.
Concho Chairman and Chief Executive Tim Leach will join
ConocoPhillips' board and leadership team.
Shares of Concho, which closed at $48.60 Friday, rose 11.1% in
premarket trading. Shares of ConocoPhillips, which closed at $33.77
Friday, rose 0.5% in premarket trading.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
October 19, 2020 07:43 ET (11:43 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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