Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  ConocoPhillips    COP

CONOCOPHILLIPS

(COP)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

ConocoPhillips to Buy Shale Rival Concho for $9.7 Billion -- 2nd Update

10/19/2020 | 08:40am EST

By Rebecca Elliott

ConocoPhillips has agreed to buy Concho Resources Inc. for $9.7 billion in what would be the largest U.S. oil deal since the coronavirus pandemic began roiling global energy markets.

The combined company would easily be the largest U.S. oil independent, with output in the prolific Permian Basin of Texas and New Mexico, second only to Occidental Petroleum Corp., according to a JPMorgan Chase & Co. analysis of Enverus data.

"Together, ConocoPhillips and Concho will have unmatched scale and quality across the important value drivers in our business: an enviable low cost of supply asset base, a strong balance sheet, a disciplined capital allocation approach, ESG excellence and great people," ConocoPhillips Chief Executive Ryan Lance said in a statement.

The all-stock acquisition values Concho at a 15% premium to its closing price on Oct. 13 and would give shareholders 1.46 shares of ConocoPhillips stock for each share of Concho common stock. Bloomberg News reported the companies were close to a deal last week.

It is the latest in a series of combinations in the U.S. oil patch, where companies are seeking to bulk up to ride out weak demand and low prices, which have hovered around $40 a barrel since June, below the level many companies require to make money on new shale wells.

Devon Energy Corp. agreed last month to a $2.6 billion merger with WPX Energy Inc., while Chevron Corp. agreed in July to buy Noble Energy Inc. for about $5 billion. Both were all-stock deals.

"Through this combination, we are joining a diversified energy company with even more scale and resources to create shareholder value in today's markets and beyond," said Concho CEO Tim Leach, who is set to join the combined company as an executive vice president and board member.

It has been a brutal year for U.S. oil companies, which are suffering from prolonged weak demand for fossil fuels during the pandemic. The companies had already been facing investor flight after failing to generate consistent returns, even as they helped lift American oil production to world-leading totals.

As of Friday, the value of Concho's shares had fallen roughly 25% in a year, as the S&P 500 index rose about 17%. ConocoPhillips's share price dropped around 38% in that time.

The deal marks a strategic departure for ConocoPhillips, which has spent years shedding assets even as peers chased aggressive growth. Adding Concho, which drills exclusively in the Permian, would give the company a far larger footprint in the nation's top oil basin.

ConocoPhillips said it expects the combined company to be able to trim costs by $500 million annually by 2022, thanks in part to lower administrative expenses. The company also plans to reduce its global exploration program.

The deal, which is subject to shareholder approval, is expected to close early next year.

Dave Sebastian contributes to this article.

Write to Rebecca Elliott at rebecca.elliott@wsj.com

(END) Dow Jones Newswires

10-19-20 0839ET

Stocks mentioned in the article
ChangeLast1st jan.
CHEVRON CORPORATION -0.90% 91.31 Delayed Quote.-24.23%
CONCHO RESOURCES INC. -2.13% 62.02 Delayed Quote.-29.18%
CONOCOPHILLIPS -1.95% 42.78 Delayed Quote.-34.22%
DEVON ENERGY CORPORATION -2.25% 14.78 Delayed Quote.-43.09%
DJ INDUSTRIAL 0.13% 29910.37 Delayed Quote.4.67%
JPMORGAN CHASE & CO. -0.66% 121.22 Delayed Quote.-12.46%
LONDON BRENT OIL 1.13% 48.24 Delayed Quote.-27.73%
NASDAQ 100 0.87% 12258.211779 Delayed Quote.40.37%
NASDAQ COMP. 0.92% 12205.846315 Delayed Quote.34.79%
NOBLE ENERGY, INC. 1.44% 8.46 End-of-day quote.-65.94%
OCCIDENTAL PETROLEUM CORPORATION -0.96% 16.56 Delayed Quote.-59.43%
S&P 500 0.24% 3638.35 Delayed Quote.12.62%
WPX ENERGY, INC. -2.97% 7.51 Delayed Quote.-45.34%
WTI 1.29% 45.54 Delayed Quote.-26.73%
All news about CONOCOPHILLIPS
11/18CONOCOPHILLIPS : Conservation groups sue US to halt oil project in Alaska
AQ
11/16CONOCOPHILLIPS : Other Events, Financial Statements and Exhibits (form 8-K)
AQ
11/16CONOCOPHILLIPS : SEC Filing 8K
CO
11/15CONOCOPHILLIPS : Global Water Sustainability Center turns 10
PU
11/13CONOCOPHILLIPS : PGNiG makes large gas discovery in Norway
AQ
11/12CONOCOPHILLIPS : Announces Significant Gas Discovery Offshore Norway
AQ
11/11CONOCOPHILLIPS : LNG expertise meets changing market challenges
PU
11/11OPEC Deepens Forecast for Drop in Global Oil Demand -- 2nd Update
DJ
11/11ConocoPhillips Discovers Gas Site Off Norwegian Coast
DJ
11/11CONOCOPHILLIPS : Announces Significant Gas Discovery Offshore Norway
PU
More news
Financials (USD)
Sales 2020 18 610 M - -
Net income 2020 -2 087 M - -
Net Debt 2020 9 861 M - -
P/E ratio 2020 -22,1x
Yield 2020 3,95%
Capitalization 45 687 M 45 687 M -
EV / Sales 2020 2,98x
EV / Sales 2021 2,56x
Nbr of Employees 9 800
Free-Float 59,5%
Chart CONOCOPHILLIPS
Duration : Period :
ConocoPhillips Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends CONOCOPHILLIPS
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 23
Average target price 46,91 $
Last Close Price 42,78 $
Spread / Highest target 44,9%
Spread / Average Target 9,66%
Spread / Lowest Target -15,8%
EPS Revisions
Managers
NameTitle
Ryan M. Lance Chairman & Chief Executive Officer
Matthew J. Fox Chief Operating Officer & Executive Vice President
William L. Bullock Chief Financial Officer & Executive Vice President
Dominic E. Macklon SVP-Strategy, Exploration & Technology
Robert A. Niblock Lead Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
CONOCOPHILLIPS-34.22%46 595
CNOOC LIMITED-25.93%55 299
EOG RESOURCES, INC.-38.60%30 919
CANADIAN NATURAL RESOURCES LIMITED-26.19%28 128
ECOPETROL S.A.-33.33%25 122
PIONEER NATURAL RESOURCES COMPANY-27.28%18 078