Concho to buy RSP Permian for $9.5 bln
USA
MIDLAND, TX, March 28, 2018 – Concho Resources has struck a USD 9.5-billion deal to acquire RSP Permian, the Midland, Texas-based independent announced on Wednesday.
The transaction consolidates Concho’s position as the operator of the largest drilling programme in the Permian Basin, with around 2,600 square kilometres of acreage and 27 rigs, the company statement added.
“This combination allows us to consolidate premier assets that seamlessly fold into our drilling programme, enhance our scale advantage and reinforce our leadership position in the Permian Basin, all while strengthening our platform for delivering predictable growth and returns. We look forward to welcoming RSP’s employees as members of the Concho team,” said Tim Leach, Concho’s chairman and CEO.
The transaction, subject to regulatory and shareholder approval, is expected to generate corporate and operational synergies of more than USD 2 billion, Concho said. It is expected to close in Q3 2018.
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