Concho Resources has struck a deal to acquire natural gas peer RSP Permian for US$9.5 billion in an all-stock deal that is the biggest acquisition in the sector since 2012. The price per share came in at a 29-percent premium to RSP’s latest stock close, giving the target company a market cap of over US$8 billion. The deal also includes RSP’s debt, hence the total price tag. Following the announcement, Concho’s chief executive expressed what many must have thought: The tie-up is a sign of further consolidation in the U.S. shale oil and gas industry. It will create the biggest player in the Permian. “I see the Permian getting more efficient, not less efficient, as we do these full-scale developments. The attraction in our industry to the Permian will just continue to grow,” Tim Leach said. Concho’s shareholders, however, don’t seem to have the same upbeat sentiment. The FT […]