Midland’s Concho Resources said Tuesday it will sell its more mature Permian Basin assets in New Mexico for $925 million to the Houston startup Spur Energy Partners.
Concho, which has struggled financially of late, will use the funds to cut down on debt and initiate a share buyback program to help appease Wall Street, while Spur Energy will keep building its foothold in the Permian’s northwestern shelf, which is outside of the booming Delaware Basin in New Mexico.
Concho said it’s starting a share repurchase effort of up to $1.5 billion to help boost the company’s stock. The sale includes about 100,000 gross acres producing 25,000 barrels of oil equivalent a day. Concho will keep its large presence in the Delaware Basin in New Mexico.