Mon, Aug. 15, 4:38 PM
- Concho Resources (NYSE:CXO) -1.4% AH after agreeing to acquire ~40K net acres in the Midland Basin from privately-held Reliance Energy for $1.625B in cash and stock.
- CXO says the deal includes 10K boe/day of production from 326 vertical wells and 44 horizontal wells, only one of which was completed in 2016, and expands its core Midland Basin position to more than 150K net acres and production of 30K boe/day.
- To help fund the deal, CXO announces a 9M-share public offering, with an underwriters option to purchase up to an additional 1.35M common shares.
Nov. 12, 2015, 5:48 PM
- Clayton Williams Energy (NYSE:CWEI) +8.4% AH following a Bloomberg report that Concho Resources (NYSE:CXO) is seeking to buy the company.
- CWEI has drawn interest from other suitors, according to the report, after saying last month that it had retained Goldman Sachs to help it explore options including a sale.
- CXO is viewed as a strong candidate to win a sale process for CWEI, given its relatively strong share price, which means it can outbid other suitors using its stock as currency, and it could save money by combining overlapping operations it has with CWEI in the Permian Basin.
Apr. 8, 2015, 7:30 PM
- Analysts say Shell's (RDS.A, RDS.B) move to buy BG Group is telling potential acquirers that one of the biggest players is now confident enough to make a big play, and that the worst may be over in the big slide in oil and gas prices.
- The deal also may be the starting gun for a wave of M&A activity that oil industry observers have been predicting since crude prices started to slump in June.
- For starters, BG's U.S. shale assets likely will become candidates for divestiture after the Shell deal closes; in buying BG, Shell has made the choice to double-down on global liquefied natural gas and de-emphasize U.S. shale.
- Among the biggest players, Exxon (NYSE:XOM) and BP could contemplate deals - perhaps even with each other, as has been speculated, since BP ranks among the cheapest major producers relative to estimated profit.
- BG itself could whet the appetite of XOM's Rex Tillerson, who recently said there was "no limitation" to what he might buy - but he will be especially selective after getting burned by 2010's XTO purchase.
- Companies with prime acreage in oil-rich shale fields in Texas, North Dakota and Colorado have become a lot cheaper in recent months; Anadarko (NYSE:APC), Cabot Oil & Gas (NYSE:COG), Pioneer Natural Resources (NYSE:PXD), Occidental (NYSE:OXY), Continental Resources (NYSE:CLR), Concho Resources (NYSE:CXO) and Tullow Oil (OTCPK:TUWLF) are among those at topping analysts’ lists.
- Galp Energia (OTC:GLPEF) may draw interest from buyers because, like BG, it offers access to oil assets in Brazil.
Sep. 30, 2014, 10:34 AM
- The positive market reaction following Encana's deal for Athlon Energy and other recent transactions may put pressure on inventory short majors and other large-cap companies to pursue M&A activity to increase their quality inventory in the U.S. onshore market, according to a UBS report.
- UBS lists six top potential targets, some of which already are swirling in the rumor mill, including Pioneer Natural Resources (NYSE:PXD), with its own fracking fleet and huge Midland Basin play making it a very attractive but expensive target.
- The firm's other five top M&A candidates: COG, CXO, OAS, RRC, WLL.
May 14, 2012, 5:38 PMAnalysts and investors applaud Concho Resources' (CXO +3.2%) $1B buyout of Three Rivers' oil and natural gas assets, sending shares higher when most energy stocks (XLE -1.6%) slumped. The “price looks good any way you slice it,” Tudor Pickering Holt says; it's "a good bolt-on transaction... which will further enhance their position in the Permian," Simmons & Co. says. | May 14, 2012, 5:38 PM | 1 Comment
May 14, 2012, 4:47 AM
Concho Resources (CXO) announced late yesterday it will buy all of the oil and natural gas assets of Three Rivers Operating Co., a portfolio company of P-E firm Riverstone Holdings, for $1B in cash.| May 14, 2012, 4:47 AM
Dec. 22, 2011, 8:54 AM
Oil/gas producer Petroleum Development (PETD) gains 2.6% after agreeing to sell its assets in Texas' Permian Basin to Concho Resources (CXO) for $188M. The company plans to use the proceeds from the deal to "retire debt on the Company's revolving credit facility and provide liquidity to fund the Company's 2012 capital budget," which it estimates will be $284M.| Dec. 22, 2011, 8:54 AM