Concho Resources Inc. Announces Proposed Offering of Senior Unsecured Notes
13 December 2016 - 11:40PM
Business Wire
Concho Resources Inc. (NYSE: CXO) (“Concho” or the
“Company”) today announced that it intends, subject to market
conditions, to publicly offer $600 million aggregate principal
amount of senior unsecured notes due 2025. The senior unsecured
notes will be fully and unconditionally guaranteed by all of
Concho’s current subsidiaries. Concho intends to use the net
proceeds from the offering to finance the redemption of all of its
outstanding 6.5% Senior Notes due 2022.
BofA Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo
Securities, LLC will act as joint book-running managers for the
senior unsecured notes offering. The offering will be made only by
means of a preliminary prospectus supplement and the accompanying
base prospectus, copies of which may be obtained on the Securities
and Exchange Commission (“SEC”) website at www.sec.gov.
Alternatively, the underwriters will arrange to send you the
preliminary prospectus supplement and related base prospectus if
you request them by contacting BofA Merrill Lynch, NC1-004-03-43,
200 North College Street, 3rd floor, Charlotte, North Carolina
28255-0001, Attention: Prospectus Department, or by e-mailing
dg.prospectus_requests@baml.com; J.P. Morgan Securities LLC, c/o
Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood,
New York 11717, or via telephone at (866) 803-9204; or Wells Fargo
Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis,
Minnesota 55402, Attention: WFS Customer Service, via telephone at
(800) 645-3751, or by e-mailing
wfscustomerservice@wellsfargo.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, as amended,
relating to the securities has been filed and became effective
August 6, 2015. This press release is not intended as a notice of
redemption. Any such notice will be given to holders of the 6.5%
Senior Notes due 2022 in a manner prescribed in the indenture
governing those notes.
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;
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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version on businesswire.com: http://www.businesswire.com/news/home/20161213005677/en/
Concho Resources Inc.Megan P. Hays,
432-685-2533Vice President of Investor RelationsorMary Tennant
Starnes, 432-221-0477Senior Financial AnalystorRyan
Thrasher, 432-686-3025Financial Analyst
Concho Resources (NYSE:CXO)
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