ConocoPhillips and Concho Resources announced that they have entered into a definitive agreement to combine companies in an all-stock transaction. Under the terms of the transaction, which has been unanimously approved by the board of directors of each company, each share of Concho Resources common stock will be exchanged for a fixed ratio of 1.46 shares of ConocoPhillips common stock, representing a 15 percent premium to closing share prices on October 13. The transaction combines two high-quality industry leaders to create a company with an approximately USD 60 billion enterprise value that will offer stakeholders a superior investment choice for sustainable performance and returns through cycles.

Highlights of the transaction include

Two best-in-class asset portfolios that create a combined resource base of approximately 23 billion barrels of oil equivalent with a less than $40 per barrel WTI cost of supply and an average cost of supply below $30 per barrel WTI

High-quality balance sheet that offers superior sustainability, resilience and flexibility across price cycles

ConocoPhillips and Concho expect to capture $500 million of annual cost and capital savings by 2022

A financial framework that delivers greater than 30 percent of cash from operations via compelling dividends and additional distributions
Elevated commitment to environmental, social and governance excellence with a newly adopted Paris-Aligned Climate Risk strategy