Concho Resources to draw on credit facility for Three Rivers purchase

By Sara Rosenberg

New York, May 14 - Concho Resources Inc. plans to use borrowings under its $2 billion credit facility to help fund the acquisition of all the oil and natural gas assets of Three Rivers Operating Co., according to a news release.

In addition, the company plans on divesting $200 million to $400 million of certain non-core assets from the acquisition and its existing assets over the next nine months.

Three Rivers, a privately held exploration and production company, is being purchased for $1 billion in cash.

Closing is expected in July, subject to regulatory approval and other customary conditions, and is subject to certain preferential rights to purchase and other purchase price adjustments.

Concho Resources is a Midland, Texas-based oil and natural gas company.

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