Concho Resources (CXO) to Acquire Three Rivers Operating Co. in $1B Cash Deal

Concho Resources Inc. (NYSE: CXO) has entered into a definitive agreement to acquire all the oil and natural gas assets of Three Rivers Operating Company and certain affiliated entities for $1.0 billion in cash. Three Rivers is a privately-held exploration and production company with approximately 310,000 gross (200,000 net) acres in the Permian Basin, including large positions in the Company’s core northern Delaware Basin play, the Midland Basin Wolfberry play, and the emerging southern Midland Basin horizontal Wolfcamp and Cline shale plays.

Highlights of the Three Rivers Acquisition:

• Estimated proved reserves of approximately 58 million barrels of oil equivalent (50% oil and 55% proved developed) as of April 1, 2012
  
  
• Estimated current net production of 7,000 barrels of oil equivalent per day
  
  
• Adds approximately 380 identified horizontal drilling locations in the Delaware Basin, almost all of which are unproved, and over 1,100 vertical drilling locations in the Midland Basin, of which over 740 are unproved
  
  
  
• Represents a 42% increase to net acreage in the Midland Basin and a 23% increase to net acreage in the northern Delaware Basin
  
  
• Approximately 65% of the acreage is held by production

J.P. Morgan acted as the Company’s lead financial advisor, BMO Capital Markets acted as a financial advisor and Vinson & Elkins LLP represented the Company in connection with the transaction.

The acquisition is expected to close in July 2012, subject to regulatory approval and other customary closing conditions, and is subject to certain preferential rights to purchase and other customary purchase price adjustments.

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