ConocoPhillips Becomes Permian’s No. 2 Producer After Shell Deal

(Bloomberg) -- ConocoPhillips’s purchase of Royal Dutch Shell Plc’s Permian assets will make it the second-largest producer in the world’s top shale basin, according to data from Enverus. 

The Houston-based company was previously ranked fourth after buying Concho Resources Inc. earlier this year, the data show. The Shell deal is expected to be completed in the fourth quarter

“After waiting patiently on M&A opportunities through the land-rush years of the shale boom, Conoco has been able to pick up prime Permian real estate at what looks to be attractive price points,” said Andrew Dittmar, senior mergers and acquisitions analyst at Enverus. 

Occidental Petroleum Corp. lost its crown as the Permian’s top producer after low oil prices and high debt levels forced the company to cut output last year. Chevron Corp. had been rising steadily up the rankings but was overtaken by Pioneer Natural Resources Co. this year after the company’s purchase of Parsley Energy and private-equity backed DoublePoint. 

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