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 $38 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.