Concho Resources (CXO) Announces 9M Share Stock Offering

August 15, 2016 4:11 PM EDT

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Concho Resources Inc. (NYSE: CXO) announced the launch of an underwritten public offering of 9,000,000 shares of common stock. The underwriters will have an option to purchase up to an additional 1,350,000 shares of common stock from the Company.

The underwriters intend to offer the shares from time to time for sale in one or more transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices. On August 12, 2016, the last sale price of the shares as reported on the New York Stock Exchange was $133.73 per share.

Proceeds from the offering are expected to finance part of the cash portion of the purchase price for the Company’s recently announced acquisition of Midland Basin assets (the “Acquisition”), subject to the closing of the Acquisition, and fund part of the redemption of the Company’s 7.0% Senior Notes due January 2021, with any remaining balance to be used for general corporate purposes, including funding future capital expenditures associated with our acquisition, exploration and development activities. Consummation of this offering, however, is not conditioned upon completion of the Acquisition. If the Acquisition is not consummated, the Company intends to use the net proceeds for general corporate purposes, including funding future capital expenditures associated with our acquisition, exploration and development activities.

Credit Suisse is acting as the book-running manager for the offering. The offering will be made only by means of a preliminary prospectus supplement and the accompanying base prospectus, copies of which may be obtained on the Securities and Exchange Commission’s website at www.sec.gov. Alternatively, the underwriter will arrange to send you the preliminary prospectus supplement and related base prospectus if you request them by contacting Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, New York 10010, via telephone at 1-800-221-1037, or by e-mailing newyork.prospectus@credit-suisse.com.



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