An oil and natural gas company in West Texas’ Permian Basin is set to become the largest drilling operation in the region after a deal worth $9.5 billion dollars.
Midland-based Concho Resources announced Wednesday they’re buying RSP Permian. The company says the deal will make them the biggest operation in West Texas.
“This combination allows us to consolidate premier assets that seamlessly fold into our drilling program, enhance our scale advantage and reinforce our leadership position in the Permian Basin, all while strengthening our platform for delivering predictable growth and returns,” said Concho CEO Tim Leach in a press release.
The all-stock deal is valued at $9.5 billion and would bring Concho’s Permian footprint to more than 640,000 acres. The deal is expected to be completed later this year, bringing the company’s total rig count to 27.
The transaction between Concho and RSP still requires shareholder approval and must meet regulatory approval as well.