(RTTNews) - Concho Resources Inc. (CXO) said that it agreed to sell its assets in the New Mexico Shelf to an affiliate of Spur Energy Partners LLC for $925 million. In addition, the company's board authorized the initiation of a repurchase program of up to $1.5 billion of common stock.
The divestiture includes about 100,000 gross acres. Current production from the Company's Shelf assets is approximately 25 thousand barrels of oil equivalent per day.
The company noted that it plans to use the proceeds from the transaction to pay down borrowings on its revolving credit facility and initiate the share repurchase program.
The transaction is expected to close in November 2019.
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