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Concho Sells New Mexico Shelf Assets to PE-Backed Spur for $925MM

Announced Date
September 03,2019
Deal Value $
925,000,000
Net Acres
70,000
Transaction Type
Property
Buyer
Spur Energy Partners LLC
Seller
Concho Resources, Inc.
Price Per BOE $
40,000
Source Documents:
   Source Link
Location
Region
Permian

Country
United States

State
New Mexico

County
Eddy ,Lea

Play
Permian Basin


Production
Production
25,000 Boe/d

Production Mix
60 % Oil


Multiples
Production ($/boe/d)
37,000

$Price/Net Acre
13,214

Adj. $/acre is based on production @40,000 Boe/d

Transaction Details: 

Concho Resources Inc. has signed a deal to sell its assets in the New Mexico Shelf to an affiliate of Spur Energy Partners LLC for $925 million.   The assets are located in Eddy & Lea county, New Mexico.

Spur emerged in May 2019 with an investment from PE firm KKR and is led by former WildHorse CEO Jay Graham.

The company has been building up their portfolio throughout 2019. Earlier this year, they acquired 22,000 net acres in the Delaware Basin from Percussion Petroleum.

Asset Details:

  • Acreage: ~100,000 gross acres
  • Production: 25 MBOEPD

The Company intends to use the proceeds from the transaction to pay down borrowings on its revolving credit facility and initiate the share repurchase program.

The transaction is subject to customary terms and conditions and is expected to close in November 2019.

RBC Richardson Barr served as financial advisor to Concho on the sale of the Shelf.

Permian Deal Activity In Last 12 Months


Other Permian Region's Deals


Announced DateBuyerSellerDeal Value($mm)LocationCategory
Jan-04-2024 - - Click here Texas  E&P
Oct-11-2023 - - Click here Texas  E&P
Aug-21-2023 - - Click here New Mexico  E&P
Nov-16-2022 - - Click here Texas  E&P
Sep-30-2022 - - Click here Texas  E&P

Price History


Date Deal Headline Price$/acre
Sep-13-2023 Vital Energy Spends $1.1 Billion to Acquires Assets from Three Permian Cos. - -
Aug-21-2023 Permian Resources Acquires Earthstone Energy - -
Jun-20-2023 Civitas Resources Acquires PE-Backed Tap Rock for $2.5 Billion - -

Other Concho Resources Deals


Announced DateBuyerSellerDeal Value($mm)LocationCategory
Oct-19-2020 - - Click here Texas  E&P
Mar-28-2018 - - Click here New Mexico  E&P
Feb-20-2018 - - Click here Texas  E&P
Aug-03-2017 - - Click here Texas  E&P
Nov-21-2016 - - Click here New Mexico  E&P

Other Spur Energy Partners LLC Deals


Announced DateBuyerSellerDeal Value($mm)LocationCategory
May-14-2019 - - Click here New Mexico  E&P