Concho Resources has entered into a definitive agreement to sell its assets in the New Mexico Shelf to an affiliate of Spur Energy Partners for USD 925 million. The divestiture includes approximately 100,000 gross acres. Current production from Concho’s Shelf assets is approximately 25,000 boed. In addition, the company’s board has authorized the initiation of a repurchase program of up to USD 1.5 billion of common stock. Richardson Barr acted as an exclusive advisor to Concho.
Tim Leach, Chairman and Chief Executive Officer, commented, “Proactively managing our asset portfolio has long been a key part of our strategy. Divesting our New Mexico Shelf position enables us to accelerate the value of these legacy assets, while focusing our portfolio on opportunities with the highest potential for strong returns. Further, the transaction reduces our cost structure and allows us to achieve the leverage target we communicated earlier this year, while delivering additional returns to shareholders under an initial USD 1.5 billion share repurchase program. The share repurchase program demonstrates our continued confidence in our strategy to generate sustainable oil growth and strong cash flow, and reflects our commitment to delivering long-term value to our shareholders.”