Concho's Big Permian Buy Likely Starting Consolidation Wave

摘要

Concho Resources' $9.5 billion all-stock acquisition of RSP Permian is expected to jump-start consolidation in the Permian Basin, where scale is increasingly critical to achieve major development and manufacturing mode. The land grab in the West Texas and southeastern New Mexico play - dubbed by some as "Permania" - slowed by early 2017 as producers sized up their new acquisitions (OD Feb.22'18). Later in the year, shareholder complaints of an industry attitude of growth before returns contributed to slower mergers and acquisitions (M&A) activity.