Burlington Resources Reportedly Eyed by ConocoPhillips

ConocoPhillips(COP), the Houston-based oil supermajor whose stock has doubled over two years, reportedly is negotiating to acquire Burlington Resources(BR) for more than $30 billion.

A deal could be announced this week, the Wall Street Journal reported, citing people familiar with the matter. The deal's exact terms couldn't be determined. Burlington, which is also based in Houston, has a market capitalization of about $29 billion and might want well over $30 billion in the deal, the newspaper said.

Shares of Burlington Resources rose $8.01, or 10.5%, to $84.10 in premarket trading. The price would represent a 52-week high for the shares, which at Friday's close are up 76% from the start of the year. Thirty-billion dollars divided by roughly 378 million Burlington shares outstanding is $79.35 a share.

An acquisition by ConocoPhillips would beef up its natural gas holdings at a time when the commodity is surging. Natural gas futures hit a new intraday record of $15.10 per million British thermal units on Friday. About 80% of Burlington's assets are North American natural gas.

ConocoPhillips, itself a product of the $17 billion acquisition of Conoco by Phillips Petroleum in 2002, saw its shares ease 7 cents to $63 in premarket trading.

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