ConocoPhillips Wades Deeper Into Permian With Concho Acquisition
The Permian Basin is about to get a new heavyweight player as the rumors of ConocoPhilips (NYSE: COP) buying Concho Resources (NYSE: CXO) proved true.
The oil giant announced today that it has agreed to acquire its rival for about $9.7 billion, or a 15% premium. The deal puts Conoco on a footing with Occidental Petroleum (NYSE: OXY) and Chevron (NYSE: CVX) with some 372,000 barrels of oil equivalent per day (BOE/d) in the Permian. Occidental produced 465,000 BOE/d in the second quarter. Chevron had reported production of 580,000 barrels of unconventional net oil-equivalent in the first quarter, but announced in March it expected Permian production to decline to 125,000 BOE/d by the end of the year, or 20% below previous guidance.
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Source Fool.com
