Rumors stoke Concho

Shares in Concho Resources jumped by the most in almost seven months after a report that the independent oil and natural gas driller was in talks to be bought by ConocoPhillips.

Bloomberg, which reported the talks, estimated Concho’s enterprise value at

$13.4 billion.

A purchase of Midland, Texas- based Concho would be the latest acquisition targeting holdings in the Permian Basin, the most productive field in the U.S.

Concho operates thousands of wells in the Permian, spread across west Texas and New Mexico. Concho says it is the top producer of oil in New Mexico and among the top 12 in Texas.

As energy prices have fallen due to lack of demand caused by the coronavirus pandemic, consolidation in the energy sector that experts predicted is now unfolding.

Shares in Concho jumped 10.3% to close at $48.66, but are still about one-third lower than they were at the beginning of the year.