Concho Resources Inc. (NYSE: CXO) (the “Company”) today
announced that it has priced a public offering of 9,000,000 shares
of its common stock for total gross proceeds (before underwriters’
fees and estimated expenses) of approximately $1,178 million. The
underwriters have an option for 30 days to purchase up to an
additional 1,350,000 shares of common stock from the Company.
The underwriters intend to offer the shares from time to time
for sale in one or more transactions on the New York Stock
Exchange, in the over-the-counter market, through negotiated
transactions or otherwise at market prices prevailing at the time
of sale, at prices related to prevailing market prices or at
negotiated prices. On August 15, 2016, the last sale price of the
shares as reported on the New York Stock Exchange was $136.44 per
share.
Proceeds from the offering are expected to finance part of the
cash portion of the purchase price for the Company’s recently
announced acquisition of Midland Basin assets (the “Acquisition”),
subject to the closing of the Acquisition, and fund part of the
redemption of the Company’s 7.0% Senior Notes due January 2021,
with any remaining balance to be used for general corporate
purposes, including funding future capital expenditures associated
with our acquisition, exploration and development activities.
Consummation of this offering, however, is not conditioned upon
completion of the Acquisition. If the Acquisition is not
consummated, the Company intends to use the net proceeds for
general corporate purposes, including funding future capital
expenditures associated with our acquisition, exploration and
development activities.
Credit Suisse, BofA Merrill Lynch and J.P. Morgan are acting as
joint book-running managers for the offering. The offering is
expected to close on August 19, 2016, subject to customary closing
conditions.
The offering will be made only by means of a prospectus
supplement and the accompanying base prospectus, copies of which
may be obtained on the Securities and Exchange Commission’s website
at www.sec.gov. Alternatively, the underwriter will arrange to send
you the prospectus supplement and related base prospectus if you
request them by contacting Credit Suisse Securities (USA) LLC,
Attention: Prospectus Department, One Madison Avenue, New York, NY
10010, via telephone at 1-800-221-1037, or by emailing
newyork.prospectus@credit-suisse.com; or BofA Merrill Lynch,
NCI-004-03-43, 200 North College Street, 3rd floor, Charlotte, NC
28255-0001, Attn: Prospectus Department, or by emailing
dg.prospectus_requests@baml.com; or J.P. Morgan Securities LLC, c/o
Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood,
NY 11717, Attention: Prospectus Department, via telephone at
866.803.9204, or by e-mailing prospectus-eq_fi@jpmchase.com.
This press release is neither an offer to sell nor a
solicitation of an offer to buy any securities, nor shall there be
any sale of any such securities in any state or jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction. A registration statement relating to the
securities has been filed and became effective on August 5,
2015.
About Concho Resources Inc.
Concho Resources Inc. is an independent oil and natural gas
company engaged in the acquisition, development, exploration and
production of oil and natural gas properties. The Company’s
operations are focused in the Permian Basin of southeast New Mexico
and west Texas.
Forward-Looking Statements and Cautionary Statements
The foregoing contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. All statements, other
than statements of historical fact, included in this press release
that address activities, events or developments that the Company
expects, believes or anticipates will or may occur in the future
are forward-looking statements. Forward-looking statements
contained in this press release specifically include statements,
estimates and projections regarding the Company’s future financial
position, operations, performance, business strategy, oil and
natural gas reserves, drilling program, capital expenditure budget,
liquidity and capital resources, the timing and success of specific
projects, outcomes and effects of litigation, claims and disputes,
derivative activities and potential financing. The words
“estimate,” “project,” “predict,” “believe,” “expect,”
“anticipate,” “potential,” “could,” “may,” “foresee,” “plan,”
“goal” or other similar expressions that convey the uncertainty of
future events or outcomes are intended to identify forward-looking
statements, which generally are not historical in nature. However,
the absence of these words does not mean that the statements are
not forward-looking. These statements are based on certain
assumptions and analyses made by the Company based on management’s
experience, expectations and perception of historical trends,
current conditions, anticipated future developments and other
factors believed to be appropriate. Forward-looking statements are
not guarantees of performance. Although the Company believes the
expectations reflected in its forward-looking statements are
reasonable and are based on reasonable assumptions, no assurance
can be given that these assumptions are accurate or that any of
these expectations will be achieved (in full or at all) or will
prove to have been correct. Moreover, such statements are subject
to a number of assumptions, risks and uncertainties, many of which
are beyond the control of the Company, which may cause actual
results to differ materially from those implied or expressed by the
forward-looking statements. These include the risk factors
discussed or referenced in the Company’s most recent Annual Report
on Form 10-K and Quarterly Report on Form 10-Q; risks relating to
declines in the prices the Company receives, or sustained depressed
prices the Company receives, for its oil and natural gas;
uncertainties about the estimated quantities of oil and natural gas
reserves; drilling and operating risks; the adequacy of the
Company’s capital resources and liquidity including, but not
limited to, access to additional borrowing capacity under its
credit facility; the effects of government regulation, permitting
and other legal requirements, including new legislation or
regulation of hydraulic fracturing and the export of oil and
natural gas; the impact of potential changes in the Company’s
credit ratings; environmental hazards, such as uncontrollable flows
of oil, natural gas, brine, well fluids, toxic gas or other
pollution into the environment, including groundwater
contamination; difficult and adverse conditions in the domestic and
global capital and credit markets; risks related to the
concentration of the Company’s operations in the Permian Basin of
southeast New Mexico and west Texas; disruptions to, capacity
constraints in or other limitations on the pipeline systems that
deliver the Company’s oil, natural gas liquids and natural gas and
other processing and transportation considerations; the costs and
availability of equipment, resources, services and personnel
required to perform the Company’s drilling and operating
activities; potential financial losses or earnings reductions from
the Company’s commodity price risk-management program; risks and
liabilities associated with acquired properties or businesses,
including the Acquisition; uncertainties about the Company’s
ability to successfully execute its business and financial plans
and strategies; uncertainties about the Company’s ability to
replace reserves and economically develop its current reserves;
general economic and business conditions, either internationally or
domestically; competition in the oil and natural gas industry;
uncertainty concerning the Company’s assumed or possible future
results of operations; and other important factors that could cause
actual results to differ materially from those projected.
Any forward-looking statement speaks only as of the date on
which such statement is made, and the Company undertakes no
obligation to correct or update any forward-looking statement,
whether as a result of new information, future events or otherwise,
except as required by applicable law.
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version on businesswire.com: http://www.businesswire.com/news/home/20160815006230/en/
Concho Resources Inc.Megan P. Hays, 432-685-2533Director
of Investor RelationsorMary Tennant, 432-221-0477Senior
Financial Analyst
Concho Resources (NYSE:CXO)
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