Looks like the cat is finally out of the bag. According to anonymous sources, ConocoPhillips is soon to acquire Midland, Texas-based Concho Resources—and by soon, we mean imminently. The deal would gift Conoco with an added 520,000 gross acres in the oil-rich Delaware and 280,000 in the Midland sub-basin, doubling the company’s current +800,000-acre Permian position. Together, Conoco and Concho produced 1.3 million BPD last quarter. No whispers of a potential price tag just yet, but Bloomberg reports Concho’s market value teeters somewhere around $8.7 billion compared with Conoco at $37 billion. This latest union follows the merger of equals in September between Oklahoma-based Devon and WPX for $2.56 billion and Chevron’s July purchase of Noble for $5 billion. Both acquisitions also were Permian-heavy. According to S&P Global, the biggest oil deals tend to follow oil price crashes. Factor in weak demand, market gluts, and a pandemic, and all signs point to culling the herd.
ConocoPhillips is a multinational corporation engaged in hydrocarbon exploration. It is based in the Energy Corridor district of Houston, Texas. The company has operations in 17 countries and has production in the United States, Norway, Canada, Australia, Timor-Leste, Indonesia, Malaysia, Libya, China, and Qatar.