Concho resources (cxo) announces sale of the alpha crude connector system in $1.22b deal


Concho Resources Inc. Nzd to usd chart (NYSE: CXO) (“Concho” or the “Company”) and Frontier Midstream Solutions, LLC (“Frontier”) today announced that they have entered into separate agreements to sell 100% of their respective ownership interests of Alpha Holding Company, LLC, the owner of the Alpha Crude Connector system (“ACC”), to Plains All American Pipeline, L.P. Chf usd (NYSE: PAA) (“Plains”) for a combined total of $1.215 billion.

Tim Leach, Concho’s Chairman, Chief Executive Officer and President, commented, “Our investment in ACC was intended to serve two primary objectives within our core upstream business – provide pipeline infrastructure to support our rapid crude oil growth in the northern Delaware Basin and improve wellhead economics through better price realizations. Forex rates in pakistan With both of these objectives secured for the long term, plus the ongoing flexibility to access multiple key markets, we have accomplished our goal of developing a premier midstream solution. Exchange rate of indian rupee to us dollar This sale not only represents an exceptional return on investment for our shareholders, but also reflects the quality of the substantial resource potential across the northern Delaware Basin. Msn news video As we continue to focus on and deliver differentiated long-term growth across our four core areas, the proceeds from this sale provide further optionality to redeploy capital into our drilling program, fund future acquisitions and reduce long-term debt.

“I want to thank Frontier for their execution and operation of ACC, and I look forward to expanding our strong relationship with Plains. Eur usd exchange rate history Their extensive crude oil infrastructure and logistics expertise will support our continued development of our high-quality drilling inventory in the northern Delaware Basin.”

Dave Presley, President and Chief Executive Officer of Frontier, commented, “It has been very exciting to work jointly with Concho to develop the ACC crude oil gathering system that provides a strategic midstream solution to support the continued growth of crude oil development in the prolific northern Delaware Basin.”

In 2014, Concho and Frontier formed the ACC joint venture to construct a crude oil transportation system in the northern Delaware Basin. 100 usd in euro Concho owns 50% of the joint venture with an option to purchase Frontier’s ownership interest at a predetermined multiple of invested capital. Cnbc stock futures market After adjusting for debt and working capital, Concho expects to receive net cash proceeds from the sale of approximately $800 million. Thb to usd As of December 31, 2016, Concho’s net investment in ACC was approximately $130 million. Usd pound exchange rate Closing is expected to occur in the first half of 2017, subject to customary terms and conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act.

ACC, which is the first large-scale crude oil gathering system in the northern Delaware Basin, includes a 515-mile gathering system as well as crude oil storage facilities, truck terminals and multiple receipt points. Yen to usd conversion The pipeline system became operational in late 2015, and at that time, Concho commenced a ten-year crude oil acreage dedication and transportation agreement. Binary translation After the closing of this transaction, the dedication and transportation agreement, which includes the tariff structure, will remain in place.

Plains intends to make investments on new interconnects and other enhancements to provide greater flow assurance and support the ongoing development of the northern Delaware Basin. Usd to inr converter In addition, Plains’ ownership of ACC will enhance access to multiple markets, including important crude oil export gateways.

Simmons & Company International, Energy Specialists of Piper Jaffray, served as exclusive financial advisor, and Vinson & Elkins served as legal advisor to Concho.

Concho Resources Inc. 100 eur usd is an independent oil and natural gas company engaged in the acquisition, development, exploration and production of oil and natural gas properties. Asian pre market futures The Company’s operations are focused in the Permian Basin of southeast New Mexico and west Texas. Mini msci emerging markets index futures For more information, visit the Company’s website at

Frontier Midstream Solutions, headquartered in Tulsa, Oklahoma, is a privately held, full service midstream energy company that specializes in the acquisition and commercial development of crude oil and natural gas midstream assets. Euro conversion rate today Frontier’s exclusive equity partner is Energy Spectrum Partners, a Dallas-based midstream focused private equity provider.