Concho Resources Acquires 24,000 Acres of New Mexico Land for $430 Million

Concho Resources shares rose 3% in pre-market trading Monday after the company said it acquired 24,000 gross acres in Northern Delaware Basin, found in New Mexico, for $430 million.

The acquisition, which is expected to close in January, adds to the company’s already 12,000 gross acres in the Red Hills area in New Mexico, expanding in total to a combined 47,000 acres. The company said that the acquisition also includes a current production level of 2.5 thousands barrels of oil equivalents per day.

“With a continued focus on diving capital efficiency gains and actively managing our portfolio, this acquisition further strengthens our industry-leading position in the Permian Basin and reinforces our ability to deliver differentiated long-term growth,” said Chief Executive Officer Tim Leach.

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