XOM - Parsing ConocoPhillips's Bid For Concho Resources
- This morning, COP announced it had agreed with Concho on an all-stock bid for CXO valued at a reported $9.7 billion.
- Including debt, the total price tag was an estimated $13.3 billion, roughly what COP received for selling the majority of its oil sands production to Cenovus back in 2017.
- The deal is valued at an estimated $13.30/boe for CXO's 1 billion boe of proved reserves, and a per-flowing-boe of production price-tag of an estimated $41.69/bbl.
- CXO's FCF generation in Q2 easily covers the dividend obligation on the newly re-issued shares.
For further details see:
Parsing ConocoPhillips's Bid For Concho Resources