Concho Resources Inc. (NYSE: CXO) completed its acquisition of about 40,000 net acres in the core of the Midland Basin from Reliance Energy for about $1.62 billion, the company said Oct. 4.
The acquired assets, which are in Andrews, Martin and Ector counties, Texas, include production of 10,000 barrels of oil equivalent per day, 67% crude.
Concho is currently running one rig on the acquired assets and plans to add a second rig in early 2017.
Concho also said it recently completed its redemption of the $600 million of 7.0% senior notes due January 2021.
Pro forma for the notes redemption, the stock offering closing and the Reliance acquisition closing, Concho had long-term debt of about $2.7 billion as of June 30. Its pro forma liquidity totaled about $2.5 billion as of June 30.
Concho Resources Inc. is based in Midland, Texas.
Concho Resources, WPX Energy and other investors agreed to sell their respective stakes in a Delaware Basin system owned and operated by Oryx Midstream to Stonepeak Infrastructure Partners.
Concho Resources agreed to form a JV with Frontier Midstream Solutions, which will build and provide crude oil gathering, transportation and storage services in the Northern Midland Basin.
Investors have not paid enough attention to the oil and gas sector, Corvex Management manager Keith Meister said.