Benzinga | Oct 19, 2020 10:10AM EDT

ConocoPhillips CEO Ryan Lance Talks $9.7B Concho Deal On CNBC

ConocoPhillips (NYSE:COP) announced Monday the company will acquire Concho Resources Inc. (NYSE:CXO) in an all-stock transaction valued at $9.7 billion. Concho Resources shareholders to receive 1.46 shares of ConocoPhillips stock for each Concho share owned.

Bloomberg first reported on the deal last week, which led to a spike in Concho's stock.

ConocoPhillips' CEO Ryan Lance stopped by CNBC's "First Take" to discuss the company's acquisition of Concho Resources.

Lance says the company needs to compete against the industrial space and is taking many steps towards the goal. He says the company has committed 30% of cash to be given back to shareholders and raised its quarterly dividend to draw investor interest.

Lance believes the acquisition creates a strong balance sheet which sets up the company with the ability to operate through cycles and embrace the volatility.