Conoco and Phillips agree to merger

19 November 2001

Conoco Inc. and Phillips Petroleum Company today announced that their boards of directors have unanimously approved a merger of equals, and that the companies have signed a definitive merger agreement. The new company will be named ConocoPhillips.

Under the agreement, Phillips shareholders will receive one share of new ConocoPhillips common stock for each share of Phillips they own and Conoco shareholders will receive 0.4677 shares of new ConocoPhillips common stock for each share of Conoco they own. Based on the closing market prices for the shares of both companies on Friday, November 16, and their debt levels as of September 30, the new company would have an enterprise value of $53.5 billion ($34.9 billion of equity; $18.6 billion of debt and preferred securities). Phillips shareholders will own about 56.6% and Conoco shareholders will own about 43.4% of the new company.

ConocoPhillips will be the third-largest integrated US energy company based on market capitalization and oil and gas reserves and production. Worldwide, it will be the sixth-largest energy company based on hydrocarbon reserves and the fifth-largest global refiner.

ConocoPhillips will have about 58,500 employees, 38,500 of them from Phillips. The companies acknowledged there would be reductions in the Phillips facilities in Bartlesville, OK, but did not say how many jobs will be cut.

Source: Conoco