The decision to plunk down $9.5 billion to purchase Royal Dutch Shell plc’s Permian Basin assets is going to give ConocoPhillips a bountiful and low-cost supply that will be necessary as the world evolves toward a low-carbon future, CEO Ryan Lance said. 

ConocoPhillips Footprint

The mega deal announced late Monday is for Shell’s West Texas portfolio within the Delaware sub-basin. It extends across 225,000 net acres. The deal comes only months after ConocoPhillips completed its $9.7 billion takeover of Permian pure-play Concho Resources Inc.

Combined, the two transactions will make “a stronger company, with a powerful 10-year plan that has been positively received by the market,” Lance said during a conference call on Tuesday.

The company in June announced a 10-year strategy plan keyed around...