- The Washington Times - Monday, November 19, 2001

TULSA, Okla. (AP) Phillips Petroleum Co. and Conoco Inc. have signed an agreement to merge in a deal tentatively worth $35 billion, the companies announced yesterday.
The new business will be called ConocoPhillips and is expected to be the nation's third-biggest oil and gas company in terms of production. It will be the fifth-biggest refiner in the world.
The boards of directors for both companies yesterday announced the merger, which includes the assumption of about $19 billion in debt.
The merger still needs to be approved by the government and shareholders.
Under the terms of the deal, Phillips shareholders will get one share of ConocoPhillips stock for each Phillips share they own. Conoco shareholders will get 0.468 shares of the new stock.
The companies said in a statement that the merger would result in better growth opportunities, improved efficiency and development of energy exploration and production.
Conoco Chairman and Chief Executive Archie W. Dunham will delay his retirement to 2004 and serve as chairman of ConocoPhillips. Phillips' Chairman and CEO James J. Mulva will become the new company's president and CEO. He'll take the chairman's job after Mr. Dunham retires.
Bartlesville, Okla.-based Phillips is a familiar face to motorists in the United States with its Phillips 66 logo. The company has more than 5 billion barrels of oil in reserve.
Last year it merged its gas gathering and processing operations with Duke Energy and combined its chemicals division with ChevronTexaco.
Phillips bought Tosco earlier this year, giving the combined company the capacity to produce more than 1.7 million barrels of oil a day.
Phillips sells gasoline at more than 12,000 locations under the Phillips 66, Circle K and 76 brands.
Houston-based Conoco has oil and gas exploration activities in 20 nations and has 3.7 billion barrels of oil in reserve. Earlier this year, it acquired Gulf Canada Resources.
The company also operates nearly 6,000 miles of pipelines nationwide and has stakes in nine refineries in the United States, Europe and Asia. It operates more than 7,000 gas stations in Europe, Thailand and the United States.
The deal comes on the heels of several big energy mergers. In September, the Federal Trade Commission approved Chevron Corp.'s acquisition of Texaco Inc. Other deals include BP Amoco's takeover of Atlantic Richfield Corp. in 1999 and Exxon Corp.'s acquisition of Mobil Corp., as the world's largest oil companies look for size and breadth to gain a competitive edge.

Copyright © 2019 The Washington Times, LLC. Click here for reprint permission.

The Washington Times Comment Policy

The Washington Times welcomes your comments on Spot.im, our third-party provider. Please read our Comment Policy before commenting.


Click to Read More and View Comments

Click to Hide