Spur Pays Cash For A Third Of Concho’s Wells

摘要

IN A RARE all-cash deal,Jay Graham’s Spur Energy Partners LLC has agreed to buy Concho Resources Inc.’s New Mexico Shelf assets for $925 million.Concho will give up an average 25,000 barrels of oil equivalent per day(boe/d)and about 35% of its total operated wells to Permian Basin player Spur,founded by Graham after he sold WildHorse Resource Development Corp.earlier this year.On Sept.3,Concho said it agreed to sell the New Mexico Shelf assets to an affiliate of Spur Energy.The assets comprise about 70,000 net acres and 2,500 operated wells.Concho reported that the deal,expected to close in November,removes higher-cost vertical wells from its portfolio.The deal gives Concho flexibility to redirect capital to more profitable areas,said Bernstein analyst Bob Brackett.Concho plans to use the $925 million in proceeds from the sale to pay down debt and initiate a $1.5 billion share repurchase program the company’s board of directors also authorized on Sept.3.