ConocoPhillips and Concho Resources have announced that they have entered into a definitive agreement to combine companies in an all-stock transaction for a total of $9.7 billion in an attempt to further consolidate the shale industry.

American 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.