It will be an all paper transaction with Concho sharesholders receiving 1.46 Conoco shares for each Concho share they own – which pitches the value of the deal at US$49.30 per share.
The deal is marked some 45% beneath the US$93 per share level seen for Concho back in January.
In Monday’s pre-market trading, Concho is indicated 2.63% higher at US$49.88.
Conocco expects to achieve around US$500mln of savings as a result of the consolidation.
“The leadership and boards of both companies believe today’s transaction is an affirmation of our commitment to lead a structural change for our vital industry,” said Ryan Lance, ConocoPhillips chief executive. “Concho is a tremendous fit with ConocoPhillips.
“Together, ConocoPhillips and Concho will have unmatched scale and quality across the important value drivers in our business: an enviable low cost of supply asset base, a strong balance sheet, a disciplined capital allocation approach, ESG excellence and great people.”