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Before we get started, I’d like to direct your attention to the forward-looking statement disclaimer and oil and gas disclosures contained in the first two slides of our presentation that are available on our website at conchoresources.com.In summary, the forward-looking statements says that statements in the presentation and on this conference call that state the company’s or management’s expectations or predictions of the future are forward-looking statements and tended to be covered by the Safe Harbor provision under the Federal Securities Laws. There are many factors that could actual results to differ materially from our expectations including those we described in the presentation and we will discuss this morning. Please refer to our 10-K, our 10-Q, our press release, and other filings with the SEC. And I would encourage you to download our presentation now from our website, conchoresources.com. On today’s call, I’ll be joined by Tim Leach, our Chairman and CEO, and Matt Hyde, our Senior Vice President of Exploration along with the rest of our management team how is here with me in the conference room and will be available to answer questions after the call. Please turn to page four. And again, we will be going through the presentation that is available on our website. Concho Resources is acquiring all of the oil and natural gas assets of Three Rivers Operating Company, as such we will realize a full step up in our tax basis. We are not assuming debt. Transaction is $1.0 billion cash, which will be funded from borrowings from our revolving credit facility, which has $2 billion commitment and a $2.5 billion borrowing base with availability of $1.8 billion as of March 31, 2012. The effective date of the transaction is April 1, 2012 and we expect to close in early July. The cash flow is in production from the period of the effective date of closing will be an adjustment to purchase price.
This time I’ll turn the discussion over to Tim Leach, our Chairman and CEO.Timothy A. Leach All right. Thanks, Steve. Good morning, everyone. We’re all here in the conference room in Midland, we’re anxious to discuss with you this acquisition we’ve been working on, we really are excited about this. Three Rivers has a very high asset quality that first attracted us to the company. This is an asset deal where we will be acquiring 58 million proven barrels, the acreage that 200,000 net acres are strategically located in and around many of our core areas. It gives us a lot of drilling upside, and when you think about the – how this builds our acquisition models of the past, it’s very similar to what we did with Marbob, Henry and the Chase. This was a privately negotiated transaction, this will provide us a property set that we can bring our drilling and operating machine to accelerate the activity, optimize the activity. And what we’re seeing here is another transaction that in a very short period of time will be able to self-fund itself, and then when you look at the peak production rate that we think we can achieve from applying our drilling to it, we think this will be a – the way we have been engineered today of 6 hecs or 7 hecs type of growth from production. And it is an acquisition as we talk about in the past that is immediately accretive on all our metrics. And as you go out into the future, we think it will even continue to get better. These assets are strategically located around areas that we’ve been having a great amount of success, both in the Delaware Basin, and then over in the Midland Basin as well. And I’m going to talk in a future slide about the Delaware Basin, but the Midland Basin assets are in areas where we are continuing to expand and have more drilling and exploration activity planned. Read the rest of this transcript for free on seekingalpha.com