Concho Resources (CXO) Sells $520M in Non-Core Assets
Tweet
Share
E-mailGet Alerts CXO Hot Sheet
Join SI Premium – FREE
Concho Resources Inc. (NYSE: CXO) today announced that it has closed its previously announced divestiture of certain non-core producing properties located primarily in the Permian Basin of West Texas and Southeast New Mexico to Legacy Reserves LP (NASDAQ: LGCY) for cash consideration of approximately $520 million, subject to customary post-closing adjustments.
Proceeds from the non-core divestiture will be used to reduce outstanding borrowings under the Company’s credit facility. Giving effect to these proceeds, the Company’s pro forma outstanding borrowings under its credit facility as of September 30, 2012 would have been $284 million.
Tim Leach, Concho's Chairman, CEO and President, commented, “This non-core asset divestiture completes our financing strategy for the Three Rivers acquisition and represents good value for mature, producing assets. Going forward, we are well positioned to execute our growth strategy targeting a deeper inventory of high rate-of-return drilling opportunities in the Delaware Basin, New Mexico Shelf and Midland Basin.”
Proceeds from the non-core divestiture will be used to reduce outstanding borrowings under the Company’s credit facility. Giving effect to these proceeds, the Company’s pro forma outstanding borrowings under its credit facility as of September 30, 2012 would have been $284 million.
Tim Leach, Concho's Chairman, CEO and President, commented, “This non-core asset divestiture completes our financing strategy for the Three Rivers acquisition and represents good value for mature, producing assets. Going forward, we are well positioned to execute our growth strategy targeting a deeper inventory of high rate-of-return drilling opportunities in the Delaware Basin, New Mexico Shelf and Midland Basin.”
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Getty Realty discloses separation terms for departing accounting officer
- Blue Moon Metals cleared to build at Nevada tungsten project
- Holcim to acquire Fermacell from James Hardie for EUR 840M
Create E-mail Alert Related Categories
Corporate NewsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
