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Concho Resources completes acquisition of Midland Basin assets

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Oilfield Technology,

Concho Resources Inc. has completed its previously announced acquisition of approximately 40 000 net acres in the core of the Midland Basin from Reliance Energy for approximately US$1.625 billion. The acquired assets, which are located in Andrews, Martin and Ector counties in Texas, include production of 10 million boe/d, comprised of 67% crude oil. Concho is currently running one rig on the acquired assets and plans to add a second rig in early 2017.


The company recently completed its previously announced redemption of the entire outstanding principal amount of US$600 million of its 7.0% Senior Notes due January 2021 (the 'Notes'). The redemption price for the Notes was 103.5% of the principal amount outstanding, which included the make-whole premium for the early redemption of the Notes as determined in accordance with the indenture governing the Notes. The company also paid accrued and unpaid interest on the Notes through September 19, 2016, the redemption date.

Concho continues to reinforce its strong financial position. Pro forma for the Notes redemption, closing of the previously announced common stock offering and closing of the Reliance acquisition, the company had long-term debt of approximately US$2.7 billion as of June 30, 2016, representing a US$0.9 billion reduction in long-term debt since June 30, 2015. Additionally, the Company’s pro forma liquidity totaled approximately US$2.5 billion as of June 30, 2016, which reflects its undrawn revolving credit facility with total capacity of US$2.5 billion.

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