Concho Resources Inc. Announces Upsizing and Pricing of Common Stock Offering
February 26 2015 - 6:29PM
Business Wire
Concho Resources Inc. (NYSE: CXO) (the “Company”) today
announced that it has priced an upsized public offering of
6,000,000 shares of its common stock for total gross proceeds
(before underwriter’s fees and estimated expenses) of approximately
$650 million. The underwriter has an option for 30 days to purchase
up to an additional 900,000 shares of common stock from the
Company. Proceeds from the offering are expected to be used to
repay all of the outstanding borrowings under the Company’s credit
facility and for general corporate purposes, which may include
funding of the Company’s drilling and development program and
future acquisitions.
BofA Merrill Lynch is acting as sole book-running manager for
the offering and has offered, and may offer, the shares at
prevailing market prices or otherwise from time to time through the
New York Stock Exchange, in the over-the-counter market, through
negotiated transactions or otherwise. On February 26, 2015, the
last reported sale price of the Company’s common stock was $112.97
per share. The offering is expected to close on March 4, 2015,
subject to customary closing conditions.
The offering is being made pursuant to an effective shelf
registration statement, which has been filed and became effective
September 21, 2012. 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
underwriters will arrange to send you the prospectus supplement and
related base prospectus if you request them by contacting: BofA
Merrill Lynch, 222 Broadway, New York, NY 10038, Attn: Prospectus
Department, email dg.prospectus_requests@baml.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.
About Concho Resources Inc.
Concho Resources Inc. is an independent oil and natural gas
company engaged in the acquisition, development and exploration of
oil and natural gas properties. The Company’s operations are
primarily 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 facts, 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. Without limiting the generality of
the foregoing, forward-looking statements contained in this press
release specifically include statements, estimates and projections
regarding the Company’s future financial position, liquidity and
capital resources, operations, performance, production growth,
acquisitions, returns, capital expenditure budgets, oil and natural
gas reserves, number of identified drilling locations, drilling
program, derivative activities, costs and other guidance included
in this press release. These statements are based on certain
assumptions 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 factors discussed or
referenced in the “Risk Factors” section of the Company’s most
recent Form 10-K filing and risks relating to declines in the
prices we receive for our oil and natural gas; uncertainties about
the estimated quantities of reserves; drilling and operating risks;
the adequacy of our capital resources and liquidity; the effects of
government regulation, permitting and other legal requirements,
including new legislation or regulation of hydraulic fracturing;
difficult and adverse conditions in the capital and credit markets;
risks related to the concentration of our operations in the Permian
Basin; shortages of oilfield equipment, services and qualified
personnel and increases in costs for such equipment, services and
personnel; the results of our hedging program; risks and
liabilities related to the integration of acquired assets;
uncertainties about our ability to successfully execute our
business and financial plans and strategies; uncertainties about
our ability to replace reserves and economically develop our
current reserves; general economic and business conditions;
competition in the oil and natural gas industry; uncertainty
concerning our 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.
Concho Resources Inc.Megan P. Hays,
432-685-2533Director of Investor RelationsorJere Thompson,
432-221-0383Financial Analyst
Concho Resources (NYSE:CXO)
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