trending Market Intelligence /marketintelligence/en/news-insights/trending/cdno6wmmrhnfbnfztfpgag2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Permian drillers Concho Resources, RSP Permian to merge in $9.5B all-stock deal

Q2: U.S. Solar and Wind Power by the Numbers

Essential Energy Insights - September 17, 2020

Essential Energy Insights September 2020

Rate case activity slips, COVID-19 proceedings remain at the forefront in August

Permian drillers Concho Resources, RSP Permian to merge in $9.5B all-stock deal

Concho Resources Inc. agreed to acquire its fellow Permian Basin producer RSP Permian Inc. in an all-stock merger deal worth about $9.5 billion, creating a combined company that will run the largest drilling program in the shale play.

Under the deal, RSP shareholders stand to get 0.320 share of Concho common stock for each RSP share they own, according to a March 28 news release. The consideration represents $50.24 per share based on the closing price of Concho's common stock as of March 27, and a 29% premium to RSP's closing price of $38.92 on the same day. The total deal value includes RSP Permian's net debt.

The merger would boost Concho's Permian Basin position to about 640,000 net acres with 27 rigs, making it the largest crude oil and natural gas producer from unconventional shale in the Permian. The additional 92,000 net acres from the combination are complementary to Concho's current acreage position, the company said. Production on RSP's assets was about 55,500 barrels of oil equivalent per day, composed of 80% crude and 20% natural gas, in the fourth quarter of 2017.

Concho also expects to realize more than $60 million in annual corporate level savings and over $2 billion in corporate and operational synergies as a result of the deal.

"The RSP team built an exceptional high-margin asset portfolio consistent with our playbook — large, contiguous positions in the core of the Permian Basin," said Tim Leach, chairman and CEO of Concho. "This combination allows us to consolidate premier assets that seamlessly fold into our drilling program, enhance our scale advantage and reinforce our leadership position in the Permian Basin, all while strengthening our platform for delivering predictable growth and returns."

Upon deal closing, the combined company would be owned 74.5% by Concho shareholders and 25.5% by RSP shareholders. Concho's board would be expanded to 11 directors to include one independent member of RSP's board.

The merger transaction is scheduled to close in the third quarter of 2018. Morgan Stanley & Co. LLC is acting as exclusive financial adviser and Sullivan & Cromwell LLP and Gibson Dunn & Crutcher LLP are acting as legal advisers to Concho. Tudor Pickering Holt & Co. is serving as RSP's exclusive financial adviser, while Vinson & Elkins LLP is acting as its legal adviser.