Deal insight

Concho acquires Midland Basin Permian position from Reliance for US$1.6 billion

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Report summary

Permian pure player Concho has increased its Midland Basin footprint by almost 35% with the US$1.625 billion acquisition of Reliance's assets. The assets include 40 000 net acres and 10 000 boe/d of production (67% oil). We value the deal slightly higher than the consideration when including corporate effects. The acreage is close to Concho's existing Midland Basin assets allowing for operational synergies including surface facilities and development corridors. This is the biggest deal of the year in the Permian and consolidates the region s position as the leading destination for tight oil focused M&A. Year to date disclosed spend in the Permian now stands at US$8.4 billion (15% of 2016 global M&A transaction value).

What's included

This report contains

  • Document

    Concho acquires Midland Basin Permian position from Reliance for US$1.6 billion

    PDF 760.60 KB

Table of contents

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 8 images and tables including:

Images

  • Acquired leases are within close proximity to Concho's wells

Tables

  • Executive summary: Table 1
  • Upstream assets: Table 1
  • Deal analysis: Table 1
  • Deal analysis: Table 2
  • Deal analysis: Table 3
  • Oil & gas pricing and assumptions: Table 1
  • Oil & gas pricing and assumptions: Table 2

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