ConocoPhillips is buying shale producer Concho Resources in an all-stock deal valued at $9.7 billion.

Concho’s common stock will be exchanged for a fixed ratio of 1.46 shares of ConocoPhillips shares.

The combined business will have an enterprise value of approximately $60 billion and a combined resource base of approximately 23 billion barrels of oil equivalent. The companies said today that the combined business will be the largest independent oil and gas company, with pro forma production of more than 1.5 million barrels of oil equivalent per day.

The transaction brings together the companies’ acreage positions across the Delaware and Midland basins and also includes positions in the Eagle Ford and Bakken in the Lower 48 and the Montney in Canada. Its position in the Permian Basin will be expanded.

The deal is expected to close in the first quarter of next year.