US supermajor ConocoPhillips is in talks to acquire rival shale company, Concho Resources, in what represents a bold bet during a time when the industry is in a historically low period, according to Bloomberg.
The companies could announce a deal in the next few weeks. In the wake of this news, Concho shares fell 1.3% in New York Tuesday, closing at $44.14 and giving it a market value of about $8.7 billion. Conoco fell 2% to $34.88, for a market value of about $37 billion. ConocoPhillips has lost nearly half its market value this year.
This would represent the latest big deal in the shale sector. It would follow Occidental Petroleum Corporation’s billion takeover of Anadarko Petroleum Corporation last year.
Conoco said last month that it would resume share repurchases, after cutting production and curbing spending to conserve cash in H1 2020.