Concho Resources Inc. Announces Pricing of Common Stock Offering
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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