In addition, Lance said, “Concho is a tremendous fit with ConocoPhillips. Together, ConocoPhillips and Concho will have an unmatched scale and quality across the important value drivers in our business: an enviable low cost of supply asset base, a strong balance sheet, a disciplined capital allocation approach, ESG excellence, and great people.”
The deal will make ConocoPhillips the largest independent oil and gas company
ConocoPhillips is optimistic that the deal will create “a compelling combination of size, best-in-class assets, financial strength, and operating capability.” Following the transaction, it will become the largest independent oil and gas firm in the country, capable of pumping out a staggering 1.5 million of oils per day.
Furthermore, Conoco’s acquisition of Concho will allow the company to capture an estimated $500 million in annual cost and capital savings by 2020. The deal will drive down the supply of resource costs for the company, boasting an average cost of supply of less than $30 per barrel and strengthening Conoco’s dominance in the Delaware and Midland Basins as well Eagle Ford and Bakken in the Lower 48, not to mention the Montney in Canada.
