Concho Resources (NYSE:CXO) is seeing major gains to CXO stock on Wednesday following merger and acquisition (M&A) news concerning ConocoPhillips (NYSE:COP).
According to recent M&A news, ConocoPhillips is looking to acquire Concho Resources. The two companies are reportedly in talks over a deal but details haven’t been made public yet. The source of these reports are insiders that are remaining anonymous.
These sources claim that a deal between the two shale companies could be announced in the next few weeks. Even so, there’s no guarantee that the talks will result in a deal. Unfortunately, the sources don’t provide any finer details about the M&A news, reports Bloomberg.
It’s unknown how much ConocoPhillips would be willing to pay for Concho Resources in a possible deal. However, it’s worth pointing out that the company has a market capitalization of $9.64 billion as of this morning. At the same time, ConocoPhillips has a market capitalization of $37.76 billion.
The M&A news about Concho Resources comes ahead of the company’s earnings report for the third quarter of 2020. It’s currently planning to release its report on Oct. 29. Wall Street’s estimates for the quarter include earnings per share of $1.11 and revenue of $912.81.
While there’s no guarantee that it will, it’s possible that Concho Resources might provide investors with details about the deal during its conference call for Q3 earnings. That call is set to take place at 9:00 a.m. Eastern Time on the same day it releases its earnings report.
CXO stock was up 12.6% and COP stock was up 1.2% as of Wednesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
