March 29, 2018 - 8:00 AM EDT
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Today’s Research Reports on Stocks to Watch: RSP Permian and Concho Resources

NEW YORK, NY / ACCESSWIRE / March 29, 2018 / In an effort to expand its Permian Basin portfolio, Concho Resources has agreed to pay $8 billion ($9.5 billion including debt) for rival RSP Permian in an all-stock deal. While RSP saw big gains in Wednesday trading, shares of Concho did the opposite and closed down nearly 9%.

RDI Initiates Coverage on:

RSP Permian, Inc.
https://rdinvesting.com/report/?ticker=RSPP

Concho Resources Inc.
https://rdinvesting.com/report/?ticker=CXO

RSP Permian, Inc. shares were rising significantly on Wednesday after Concho offered $9.5 billion for the company. The stock closed the day with gains of nearly 16% yesterday on significant trading volume of nearly 35 million shares. Shares also soared to a brand new high of $47.170 during intra-day trading. The company is one of the largest oil and gas producers in Dallas and this acquisition will add 92,000 net acres to the existing acreage giving Concho control over roughly 640,000 net acres in the Permian. With 27 rigs, the newly combined company would operate one of the biggest drilling and completion programs in the basin. Concho CEO Tim Leach remarked, "Together our scale in the Permian basin will be powerful." In a conference call with analysts he further said, "As companies get to this point and look at their assets and their activity, the efficiency you can gain by a bigger balance sheet and a bigger program is really what's driving this."

Access RDI’s RSP Permian, Inc. Research Report at:
https://rdinvesting.com/report/?ticker=RSPP

Concho Resources Inc. shares closed down 8.76% on Wednesday with about 12 million shares traded. Despite the loss, it was revealed yesterday that the company has acquired rival RSP Permian in an all-stock deal that would create the Permian basin’s biggest shale producer. Concho agreed to pay $8 billion ($9.5 billion including debt) for RSP Permian. As part of the deal, RSP shareholders would receive 0.320 of Concho shares for each of their shares. This roughly values RSP Permian at $50.24 a share. The shares of RSP Permian closed at $38.92 on Tuesday, before the deal was announced yesterday. The deal is still subject to approval by shareholders of both companies and is expected to close in the third quarter. According to senior analyst at PLS Inc., Andrew Dittmar, "We wouldn't be surprised if the larger, well-capitalized Permian players leverage their market premium to go after the smaller Permian producers." RBC analyst Scott Hanold remarked, "This is a significant acquisition and a lot of synergies that make sense."

Access RDI’s Concho Resources Inc. Research Report at:
https://rdinvesting.com/report/?ticker=CXO

Our Actionable Research on RSP Permian, Inc. (NYSE: RSPP) and Concho Resources Inc. (NYSE: CXO) can be downloaded free of charge at Research Driven Investing.

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Disclaimer: This article is written by an independent contributor of RDInvesting.com and Nadia Noorani, a CFA® charter holder, has provided necessary guidance in preparing the document templates. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

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Source: ACCESSWIRE Investor Awareness (March 29, 2018 - 8:00 AM EDT)

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