In the largest Permian-only deal ever, Concho plans to acquire RSP Permian for US$9.5 billion in an all stock transaction, representing a 29% premium over market value. The pro-forma company will soon operate the largest rig program in the Permian, at 27 rigs across 640,000 net acres. We value the acquisition at a remaining post-tax NPV10 of US$9.9 billion (US$65/bbl long-term price assumption). Concho has placed a lot of value (PV of US$2+ billion) in this acquisition's potential ...
Table of contents
Upsides and risks
Oil & gas pricing and assumptions
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