NEW YORK – Global oil major ConocoPhillips (COP) Monday said it would acquire Burlington Resources Inc. (BR), a major independent producer of natural gas, in a cash-and-stock deal valued at $35.6 billion.
The deal's transaction value is $92 per share, based on the closing price of ConocoPhillips' shares on Dec. 9, the company said.
ConocoPhillips said it would pay $46.50 in cash plus 0.7214 of its own stock for each Burlington share, in a deal that would bring the No. 3 U.S. oil company within striking distance from a revenue standpoint of the U.S. No. 2, Chevron Corp. Burlington had 378.04 million shares outstanding as of Sept. 30.
Burlington's oil production is relatively small but the company produced nearly 1.9 billion cubic feet per day of natural gas during the most recent quarter. ConocoPhillips produced 3.11 billion cubic feet of gas per day in the third quarter.
Even as the price of crude oil has slipped from its post-Katrina highs, natural gas has continued to set new records, passing $15 per million British thermal units.
Burlington's shares, while off their post-Katrina all-time highs, were still up about 75 percent for the year, with a 16 percent rise in the preceding month alone.
Burlington's shares closed up $6.41 to $82.50 Monday.