There is uncertainty in our community today over the news that Concho Resources Inc. is currently negotiating to be acquired by ConocoPhillips. ConocoPhillips is a wonderful company who has generously supported Carlsbad and the surrounding area in a number of ways. Concho Resources Inc. was one of the first companies to participate in our annual energy summit and, in fact, helped introduce us to so many of our other partners in the area. Concho has also been a great company with an outlook that prioritizes the Permian Basin. We hope for a resolution that is best for all of our residents, the community and both companies. -Mayor Dale Janway
ConocoPhillips is in talks to acquire rival Concho Resources Inc., according to people familiar with the matter, as one of America’s largest independent oil explorers looks to make a bold bet on shale during an historic industry downturn.
The companies may announce a deal in the next few weeks, said the people, who asked to not be identified because the matter isn’t public. Concho shares climbed as much as 15% in New York trading Wednesday, the most since April. They were up 13% at $49.73 each at 9:50 a.m., giving the Midland, Texas-based company a market value of about $9.8 billion.
Conoco shares climbed 1% to $35.25, translating into a market value of almost $38 billion. No final decision has been made and talks could fall through, the people said. Representatives for Conoco and Concho didn’t immediately respond to requests for comment.
The potential combination would be the latest sign that long-expected consolidation in the shale patch has finally arrived. A purchase of Concho, which has an enterprise value of $13.4 billion, could become the year’s largest takeover of an oil and gas company, according to data compiled by Bloomberg. It would likely surpass Chevron Corp.’s all-stock acquisition of Noble Energy Inc., which was valued at about $11.8 billion including debt when it closed in October.
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By: Ed Hammond, Kiel Porter, and Scott Deveau for Bloomberg