ConocoPhillips Co. is in talks to acquire Permian Basin shale producer Concho Resources Inc., Bloomberg News reported on Oct. 14, citing people familiar with the matter.
The companies may announce a deal in a few weeks, the report said, adding that no final decision has been made and talks could fall through.
ConocoPhillips declined to comment, while Concho did not immediately respond to Reuters request for comment.
As on Oct. 13, the market cap of Concho was $8.68 billion.
The report comes amid a decline in demand for hydrocarbons due to the coronavirus-induced lockdowns, resulting in a historic fall in oil prices.
Last month, Oklahoma-based oil and gas producer Devon Energy Corp. decided to buy shale-oil rival WPX Energy Inc. for $2.56 billion in an all-stock transaction that includes the assumption of $3.2 billion of net debt.
That was the lowest close for Brent crude since June 12 and for WTI since Oct. 2. It was the biggest daily percentage losses for both benchmarks since Sept. 8.
Natural gas operators in the Haynesville Shale discuss prices, returns, LNG demand and technology during Hart Energy’s DUG Haynesville Virtual Conference.
U.S. oil output reached around 13 million barrels per day (MMbbl/d) in February before the coronavirus pandemic hit fuel demand.