ConocoPhillips is purchasing shale manufacturer Concho Resources within an all-stock deal valued at $9.7 billion.
Concho’s common stock will be traded for a set ratio of 1.46 stocks of ConocoPhillips stocks.
The combined company will have an enterprise value of about $60 billion and a combined source base of about 23 billion barrels of oil equivalent. The firms said Monday the joint company will be the biggest independent oil and gas business, with pro forma creation of over 1.5 million gallons of oil equivalent per day.
The transaction brings together the firms’ acreage positions across the Delaware and Midland basins and includes positions from the Eagle Ford and Bakken from the Lower 48 and the Montney in Canada. Its position at the Permian Basin is going to be enlarged.