ConocoPhillips COP is considering the acquisition of smaller rival Concho Resources Inc. CXO, per Bloomberg. The current market volatility might trigger more acquisitions in the oil and gas space.
Although any final decision regarding the acquisition is yet to be made, there’s a chance that a deal might be finalized in the next few weeks. A massive $38.2-billion upstream company, ConocoPhillips’ acquisition of Concho Resources — a $8.8-billion company — will likely lead to the creation of one of the biggest exploration and production companies in the world.
The move is expected to boost ConocoPhillips’ oil-rich Permian Basin acreages. Spanning 800,000 gross (550,000 net) acres, Concho Resources’ assets are spread over high-quality land across the core Delaware and Midland Basins. Total second-quarter production for ConocoPhillips and Concho Resources were recorded at 1.3 million barrels of oil equivalent per day, per Bloomberg.
Now, a question may arise whether ConocoPhillips’ balance sheet