Concho Resources Inc. and RSP Permian Inc. have entered into a definitive agreement under which Concho will acquire RSP in an all-stock transaction valued at approximately $9.5 billion, inclusive of RSP’s net debt. The transaction was unanimously approved by the board of directors of each company.
The acquisition will add approximately 92,000 net acres that strongly complement Concho’s existing acreage position in the Permian Basin. The combined position will cover more than 640,000 net acres. In fourth-quarter 2017, production on RSP’s assets totaled approximately 55,500 boe/d on a two-stream basis, of which approximately 80 percent was crude oil and 20 percent was natural gas.
The combined company will run the largest drilling and completion program in the Permian Basin. The present value of corporate and operational synergies is expected to exceed $2 billion.
The transaction is expected to be completed in the third quarter of 2018.
For more information, visit www.concho.com or call (432) 683-7443.