Concho Resources Inc. (NYSE: CXO) (“Concho” or the
“Company”) today announced that it has priced an offering of a
total of $1,800 million aggregate principal amount of senior
unsecured notes, consisting of $1,000 million aggregate principal
amount of senior unsecured notes due 2027 (the “2027 notes”) and
$800 million aggregate principal amount of senior unsecured notes
due 2047 (the “2047 notes”). The 2027 notes will bear interest at a
rate of 3.750% per annum and will be issued at 99.636% of par, and
the 2047 notes will bear interest at a rate of 4.875% per annum and
will be issued at 99.749% of par. Concho intends to use the net
proceeds from the offering, together with cash on hand and
borrowings under its credit facility, to fund the purchase of its
5.5% Senior Notes due 2022 and 5.5% Senior Notes due 2023
(collectively, the “5.5% notes”) pursuant to a proposed tender
offer and the redemption of any 5.5% notes that remain outstanding
after completion or termination of the tender offer. Concho expects
to close the sale of the notes on September 26, 2017, subject to
customary closing conditions.
BofA Merrill Lynch, Barclays Capital Inc. and Citigroup Global
Markets Inc. will act as joint book-running managers for the senior
unsecured notes offering. The offering will be made only by means
of a preliminary prospectus supplement and the accompanying base
prospectus, copies of which may be obtained on the Securities and
Exchange Commission (“SEC”) website at www.sec.gov. Alternatively,
the underwriters will arrange to send you the preliminary
prospectus supplement and related base prospectus if you request
them by contacting Merrill Lynch, Pierce, Fenner & Smith
Incorporated, 200 North College Street, NC1-004-03-43, Charlotte,
NC 28255-0001, Attention: Prospectus Department, or by e-mailing
dg.prospectus_requests@baml.com, or via phone at (800) 294-1322;
Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155
Long Island Ave., Edgewood, NY 11717, or by e-mailing
barclaysprospectus@broadridge.com, or via phone at (888) 603-5847;
or Citigroup Global Markets Inc., c/o Broadridge Financial
Solutions, 1155 Long Island Ave., Edgewood, NY 11717, or by
e-mailing prospectus@citi.com, or via phone at (800) 831-9146.
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, as amended,
relating to the securities has been filed and became effective
August 6, 2015. This press release is not intended as a notice of
redemption. Any such notice will be given to holders of the 5.5%
notes in a manner prescribed in the indenture governing those
notes.
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 risks include, without
limitation, the risk factors discussed or referenced in the
Company’s most recent Annual Report on Form 10-K and in the
Company’s Quarterly Report on Form 10-Q for the quarter ended March
31, 2017; risks relating to declines in, or the sustained
depression of, the prices the Company receives for its oil and
natural gas; uncertainties about the estimated quantities of oil
and natural gas reserves; drilling, completion and operating risks;
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; 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 qualified personnel required to perform the Company’s
drilling, completion 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; uncertainties about the
Company’s ability to successfully execute its business and
financial plans and strategies; the adequacy of the Company’s
capital resources and liquidity including, but not limited to,
access to additional borrowing capacity under the Company’s credit
facility; the impact of potential changes in the Company’s credit
ratings; cybersecurity risks, such as those involving unauthorized
access, malicious software, data privacy breaches by employees or
others with authorized access, cyber or phishing-attacks,
ransomware and other security issues; 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/20170913006471/en/
Concho Resources Inc.Megan P. Hays,
432-685-2533Vice President of Investor Relations and Public
AffairsorMary T. Starnes, 432-221-0477Senior Financial
Analyst
Concho Resources (NYSE:CXO)
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