Concho Resources Inc. (NYSE: CXO) ("Concho" or the "Company") 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.”
About Concho Resources Inc.
Concho Resources Inc. is an independent oil and natural gas company engaged in the acquisition, development and exploration of oil and natural gas properties. The Company's operations are focused in the Permian Basin of Southeast New Mexico and West Texas. For more information, visit Concho’s website at
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