Concho Resources has plans to acquire RSP Permian for $9.5 billion, inclusive of RSP’s net debt.
The all-stock merger of the two Permian-focused E&Ps is expected to create the largest unconventional shale producer of oil and natural gas in the prolific basin, the companies said in a joint press release. As a combined company it will have 27 rigs in the Permian Basin.
The acquisition will add approximately 92,000 net acres that strongly complement Concho’s existing acreage position in the Permian Basin. The combined position will cover more than 640,000 net acres. In the fourth quarter 2017, production on RSP’s assets totaled approximately 55.5 thousand barrels of oil equivalent (Boe) per day on a two-stream basis, of which approximately 80 percent was crude oil and 20 percent was natural gas. The transaction adds 2.2 billion Boe of resource potential, of which more than two-thirds is premium resource.
The transaction, which is expected to be completed in the third quarter of 2018, is subject to the approval of both Concho and RSP shareholders, the satisfaction of certain regulatory approvals and other customary closing conditions.
