Concho Resources Inc. (NYSE:CXO) Files An 8-K Entry into a Material Definitive Agreement

ME Staff 8-k
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Concho Resources Inc. (NYSE:CXO) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.

On April 12, 2017, Concho Resources Inc. (the “Company”) entered into the Second Amendment to its Second Amended and Restated Credit Agreement (the “Second Amendment”) dated as of May 9, 2014, with the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent (the “Second Amended and Restated Credit Agreement”).  

The Second Amendment increases the Company’s current borrowing base under the Second Amended and Restated Credit Agreement from $2.8 billion to $3.0 billion.  In addition, the Second Amendment (i) extends the maturity date of the Company’s credit facility from May 9, 2019 to May 9, 2022 and (ii) decreases the aggregate amount of lender commitments from $2.5 billion to $2.0 billion. The Second Amendment also amends the corporate ratings floor sufficient to terminate an “Investment Grade Period” under the Second Amended and Restated Credit Agreement (i) from “Ba1” to “Ba2” for Moody’s Investors Service, Inc. and (ii) from “BB+” to “BB” for S&P Global Ratings.

The foregoing description of the Second Amendment is a summary only and is qualified in its entirety by reference to the complete text of the Second Amendment, a copy of which will be filed as an exhibit to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth under Item 1.01 above is incorporated by reference.


About Concho Resources Inc. (NYSE:CXO)

Concho Resources Inc. is an independent oil and natural gas company engaged in the acquisition, development and exploration of oil and natural gas properties. The Company’s operations are focused in the Permian Basin of Southeast New Mexico and West Texas, an onshore oil and natural gas basin in the United States. Its three core operating areas include New Mexico Shelf, where it targets the Yeso formation with horizontal drilling; Delaware Basin, where it uses horizontal drilling and technology to target the Bone Spring formation and the Wolfcamp shale formation, and Midland Basin, where it targets the Wolfcamp and Spraberry formations with horizontal drilling. The Company has reserves of approximately 623.5 million barrels of oil equivalent (MMBoe) that are located in its core operating areas. The Company’s core operations are focused in the Permian Basin, which underlies an area of Southeast New Mexico and West Texas approximately 250 miles wide and 300 miles long.

Concho Resources Inc. (NYSE:CXO) Recent Trading Information

Concho Resources Inc. (NYSE:CXO) closed its last trading session up +0.27 at 132.27 with 1,399,532 shares trading hands.