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Concho Resources to Sell New Mexico Shelf Assets for USD 925 Million

Gasoil News - Published on Thu, 05 Sep 2019

Image Source: Simply Wall St News
Concho Resources Inc 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 USD 925 million. Mr Tim Leach, Chairman and Chief Executive Officer, said that “Proactively managing our asset portfolio has long been a key part of our strategy. Divesting our New Mexico Shelf position enables us to accelerate the value of these legacy assets, while focusing our portfolio on opportunities with the highest potential for strong returns. Further, the transaction reduces our cost structure and allows us to achieve the leverage target we communicated earlier this year, while delivering additional returns to shareholders under an initial USD 1.5 billion share repurchase program. The share repurchase program demonstrates our continued confidence in our strategy to generate sustainable oil growth and strong cash flow, and reflects our commitment to delivering long-term value to our shareholders.”

In addition, the Company’s board of directors authorized the initiation of a repurchase program of up to USD 1.5 billion of the Company’s shares of common stock.

Source :

Posted By : Sanju Moirangthem on Thu, 05 Sep 2019
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