ConocoPhillips and Concho Resources have agreed to merge their companies in an all-stock transaction to create a company with an approximately $60 billion enterprise value.
The two portfolios will create a combined resource base of approximately 23 billion barrels of oil equivalent.
“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 Tim Leach, chairman and CEO of Concho Resources.
ConocoPhillips and Concho expect to capture $500 million of annual cost and capital savings by 2022, according to the companies. They have also pledged a greater commitment to ESG initiatives with a newly adopted Paris-Aligned Climate Risk strategy.
“From our position of strength and in light of market trends, our board of directors and management team evaluated a wide range of options and unanimously determined that combining with ConocoPhillips is the
