"Size, scope and scale has become more important," said Concho Chief Executive Timothy Leach, who will run the combined company's U.S. production excluding Alaska. "This combination with ConocoPhillips was the best thing for our shareholders."
NEW YORK: ConocoPhillips on Monday agreed to buy U.S. shale oil producer Concho Resources Inc for $9.7 billion, as the energy sector consolidates further on the back of lower fuel prices and demand.
The low-premium, all-stock deal comes as many U.S. shale companies have been mired in losses due to weak crude prices and, unlike in past downturns, have struggled to raise new capital to restructure heavy debts.
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