Concho Resources Inc. (NYSE: CXO) (“Concho”) today announced that it intends, subject to market conditions, to publicly offer $250 million aggregate principal amount of senior unsecured notes due 2017. The senior unsecured notes will be fully and unconditionally guaranteed by all of Concho’s current subsidiaries. The offering and sale of the senior unsecured notes will be made pursuant to an automatic shelf registration statement on Form S-3 filed today with the Securities and Exchange Commission ("SEC"). Concho intends to use the net proceeds from the offering to repay a portion of the outstanding balance under its credit facility.
J.P. Morgan Securities Inc., Banc of America Securities LLC, BNP Paribas Securities Corp. 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 SEC’s 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 J.P. Morgan Securities Inc. at 270 Park Avenue, 8th Floor, New York, NY 10017, Attention: Syndicate Desk or by calling (800) 245-8812; Banc of America Securities LLC at One Bryant Park, New York, NY 10036, Attention: Prospectus Department or by calling (800) 294-1322; BNP Paribas Securities Corp., 787 Seventh Avenue, New York, NY 10019, Attention: Syndicate Desk 7th Floor, or by calling (800) 854-5674; or Wells Fargo Securities, LLC at 301 South College Street, 6th Floor, Charlotte, NC 28202, Attention: High Yield Syndicate or by calling (704) 715-7035.
This announcement 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 relating to the securities has been filed and became effective September 9, 2009.
Except for historical information, statements made in this release about the proposed offering are 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. These statements are based on assumptions and estimates that Concho's management believes are reasonable based on currently available information; however, management's assumptions and Concho's future performance are subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, the volatility of oil and gas prices, the costs and results of drilling and operations, the timing of production, hedging results, mechanical and other inherent risks associated with oil and gas production, weather, the availability of drilling equipment, changes in interest rates, litigation, uncertainties about reserve estimates, environmental risks and the occurrence of any unanticipated acquisition opportunities. Concho undertakes no obligation to publicly update or revise any forward-looking statements. Further information on risks and uncertainties is available in Concho's filings with the SEC, which are incorporated herein by reference.
About Concho Resources Inc.
Concho Resources Inc. is an independent oil and natural gas company engaged in the acquisition, development, exploitation and exploration of oil and natural gas properties. Concho’s operations are focused in the Permian Basin of Southeast New Mexico and West Texas. In addition, Concho is involved in a number of emerging plays.
Contacts:
Concho Resources Inc.
Jack Harper, 432-683-7443
Vice President
- Capital Markets and Business Development
