Concho sells New Mexico Shelf assets for $925 million
Concho Resources Inc., Midland, Tex., has agreed to sell its assets in the New Mexico Shelf to an affiliate of KKR-backed Spur Energy Partners LLC for $925 million.
The assets include 100,000 gross (70,000 net) acres with current production of 25,000 boe/d and 2,500 operated wells (35% of total Concho-operated wells).
The sale focuses the portfolio, removes higher cost vertical wells, and will reduce debt, the company said. It will use 60% of the proceeds for debt reduction and the remaining 40% will go towards share repurchases, as the company reported an authorized stock repurchase program up to $1.5 billion in conjunction with the deal.
The transaction is subject to customary terms and conditions and is expected to close in November.