Concho Resources to sell Mexico Shelf assets for $925M
Concho Resources announced that it has entered into a definitive agreement to sell its assets in the New Mexico Shelf to an affiliate of Spur Energy Partners LLC for $925M. The divestiture includes approximately 100,000 gross acres. Current production from the company's Shelf assets is approximately 25 thousand barrels of oil equivalent per day. Following the sale, Concho will maintain a large presence and development program in southeastern New Mexico and will continue to support the local communities in which its employees live and work. The company intends to use the proceeds from the transaction to pay down borrowings on its revolving credit facility and initiate a share repurchase program. The transaction is subject to customary terms and conditions and is expected to close in November.