ConocoPhillips to buy shale producer Concho Resources for US$9.7 billion BENGALURU|HOUSTON: ConocoPhillips on Monday agreed to buy US shale oil producer Concho Resources Inc for US$9.7 billion (RM40.18 billion), as the energy sector continued to consolidate amid lower fuel prices and demand. The low-premium, all-stock deal comes as many US 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. The deal swaps 1.46 shares of ConocoPhillips for each Concho share, an about 1.5% premium over its Friday price. Concho shares on Monday morning were up a fraction at US$48.65. They sold for as much as US$93 a share in January before the Covid-19 pandemic cut oil demand and prices. "Size, Scope and scale" has become more important," said Concho chief executive Timothy Leach, who once the deal closes will run the combined company's US production excluding Alaska. "This combination with ConocoPhillips was the best thing for our shareholders." The purchase would propel ConocoPhillips to the ranks of the top producers in the Permian Basin, the prime US oilfield, which stretches from West Texas to southeastern New Mexico.