Record-breaking Oil and Gas Deal Worth $14 Billion Signed on a Monday

In what is considered as one of the biggest energy deals of the year, ConocoPhilips has signed a record-breaking deal worth $14 billion that will allow them to acquire shale oil assets from Concho Resources Inc., a Texas -based energy company. The deal was announced on a Monday, and it is expected to close in the first quarter of 2021.

The acquisition will give ConocoPhillips access to valuable shale oil assets in Texas and New Mexico, areas that are known for their vast oil reserves. According to analysts, the acquisition will enable ConocoPhillips to expand its oil and gas operations in the Permian Basin, a region that is considered as one of the most significant oil-producing areas in the United States.

The details of the deal

Under the terms of the agreement, ConocoPhilips will pay $9.7 billion in stock and $4.3 billion in cash to acquire all the outstanding shares of Concho resources. The acquisition will give ConocoPhillips access to 23 billion barrels of oil and gas resources and will result in a 24% increase in ConocoPhillips’ overall production of oil and gas.

The significance of the deal

This deal is significant because it shows that ConocoPhillips is focusing on expanding its shale oil operations despite the recent volatility in oil prices. Shale oil is extracted using a process called hydraulic fracturing, and it has been a game-changer for the oil and gas industry. Shale oil production has increased significantly in recent years, and it has helped the United States become more energy independent.

Conclusion

The signing of this record-breaking deal highlights the critical role that shale oil plays in the energy sector. The acquisition will allow ConocoPhillips to expand its operations, increase production, and position itself as one of the biggest energy companies in the United States.

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Summary: ConocoPhillips has signed a record-breaking deal worth $14 billion to acquire shale oil assets from Concho Resources Inc. The acquisition will allow ConocoPhillips to expand its oil and gas operations in Texas and New Mexico, areas that are known for their vast oil reserves. The deal highlights the critical role that shale oil plays in the energy sector and will help the United States become more energy independent. #BUSINESS