ConocoPhillips, Concho Resources To Combine In $9.7 Bln All-Stock Transaction - Quick Facts

(RTTNews) - ConocoPhillips (COP) and Concho Resources (CXO) announced Monday that they have entered into a definitive agreement to combine companies in an all-stock transaction valued at $9.7 billion.

The transaction creates a company with an approximately $60 billion enterprise value and a combined resource base of approximately 23 billion barrels of oil equivalent with a less than $40 per barrel WTI cost of supply and an average cost of supply below $30 per barrel WTI.

Under the terms of the transaction, each share of Concho common stock will be exchanged for a fixed ratio of 1.46 shares of ConocoPhillips common stock, representing a 15 percent premium to closing share prices on October 13.

ConocoPhillips and Concho expect to capture $500 million of annual cost and capital savings by 2022. The transaction is expected to be accretive on consensus key financial metrics.

Upon closing, Concho's Chairman and Chief Executive Officer Tim Leach will join ConocoPhillips' board of directors and executive leadership team as executive vice president and president, Lower 48. This transaction will enhance the company's competitive position in Midland.

The transaction is subject to the approval of both ConocoPhillips and Concho stockholders, regulatory clearance and other customary closing conditions. The transaction is expected to close in the first quarter of 2021.

In light of the pending merger, ConocoPhillips has suspended share repurchases until after the transaction closes.