Concho Taps Equity Market; Issue Stock To Pay For Acquisition
Concho Resources Inc. 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 12, 2016, the last sale price of the shares as reported on the New York Stock Exchange was $133.73 per share.
Fund acquistion and pay down debt
Proceeds from the offering are expected to finance part of the cash portion of the purchase price for the Company’s recently announced acquisition of Midland Basin assets (the “Acquisition”), subject to the closing of the Acquisition, and fund part of the redemption of the Company’s 7.0% Senior Notes due January 2021, with any remaining balance to be used for general corporate purposes, including funding future capital expenditures associated with our acquisition, exploration and development activities.
Credit Suisse is acting as the book-running manager for the offering.
/Book Runner
Vice President
Midland ,Texas ,79701
(432) 683-7443
Permian Related Financings
| Announced Date | Title | Company | Value($MM) | Financing Type |
|---|---|---|---|---|
| 2021-11-17 | Northern Oil Offers ~$230MM in Stock to Fund Permian Deal | Northern Oil and Gas, Inc. | 230 | Equity-Stock-Sales |
| 2021-06-30 | Riley Exploration Permian Prices $50MM Stock Offering | Riley Exploration Permian Inc. | 50 | Equity-Stock-Sales |
| 2018-04-19 | Torchlights Taps Equity Markets for $5.4 Million | Torchlight Energy Resources, Inc. | 5.37 | Equity-Stock-Sales |
| 2018-02-23 | Ring Energy Taps Equity Markets for $75MM | Ring Energy Inc. | 75 | Equity-Stock-Sales |