ConocoPhillips Co. is in talks to acquire Permian Basin shale producer Concho Resources Inc., Bloomberg News reported on Oct. 14, citing people familiar with the matter.
The companies may announce a deal in a few weeks, the report said, adding that no final decision has been made and talks could fall through.
ConocoPhillips declined to comment, while Concho did not immediately respond to Reuters request for comment.
As on Oct. 13, the market cap of Concho was $8.68 billion.
The report comes amid a decline in demand for hydrocarbons due to the coronavirus-induced lockdowns, resulting in a historic fall in oil prices.
Last month, Oklahoma-based oil and gas producer Devon Energy Corp. decided to buy shale-oil rival WPX Energy Inc. for $2.56 billion in an all-stock transaction that includes the assumption of $3.2 billion of net debt.
Recommended Reading
Adkins: The Overhang of Excess Oil May Not Be All that Massive
2024-12-02 - Raymond James’ J. Marshall Adkins says the market is factoring in perceptions of OPEC excess capacity from countries such as Venezuela, Nigeria and Iraq that have yet to hit their production potential—and probably won't anytime soon.
Paisie: Trump’s Impact on All Things Energy
2024-12-11 - President-elect Donald Trump’s policies are expected to benefit the U.S. oil and gas sector, but also bring economic and geopolitical risks.
Golar LNG Buys $90MM Stake in FLNG Hilli
2024-12-24 - Golar LNG has purchased Seatrium’s and Black & Veatch’s minority ownership in the asset, which represents 8% of FLNG Hilli’s full capacity.
Stocks Slump, Dollar Soars as Trump Tariffs Trigger Trade War
2025-02-03 - Oil prices rose, with WTI up 2.4% at $74.27 a barrel and Brent crude futures adding 1% to $76.40 a barrel.
EnCap Portfolio Company to Develop NatGas Hub with DRW Energy
2025-01-21 - EnCap Flatrock Midstream portfolio company Vecino Energy Partners LLC and DRW Energy Trading LLC will be developing an intrastate natural gas storage hub together.