- Rumor has it that Conoco Phillips intends to purchase Concho Resources. The combination would make COP a major force in the Permian Basin.
- I've been worried about a big acquisition because Conoco was holding so much cash and not returning it to shareholders in the form of dividends.
- I estimate it would take at least $13 billion+ to take out Concho - that would be ~$13+/boe based on Concho's proved reserves.
- Certainly Concho is cheaper than it was pre-Covid, but that doesn't mean it is worth it for COP to double-down on more O&G assets in an age of energy abundance.
For further details see:
Conoco/Concho - A Potential Permian PowerHouse Combination