The massive market transformation this month that some on Wall Street called a "once in a decade opportunity" might have just been a one-off technical move because of taxes.Marketsread more
The Pentagon will deploy U.S. forces to the Middle East on the heels of the attack on Saudi Arabian oil facilities, United States Secretary of Defense Mark Esper announced...Defenseread more
Iran's audacious drone and cruise missile attack on Saudi Arabia's oil producing facilities has provided a critical test yet for the Trump administration's foreign policy. A...Politicsread more
CNBC did a deep dive through the most recent Wall Street research to find stocks that analysts say are underappreciated.Marketsread more
Shares of MasterCard are up 46% this year, and 1120% since 2011, getting a boost from the strong U.S. consumer.Investingread more
Trade with China is the 'big unknown' for the Federal Reserve as it decides how best to support the U.S. economy, says Council on Foreign Relations Director of International...Futures Nowread more
Lobbying experts said the visit is likely an attempt to be in lawmakers' ears as they consider legislation that would impact Facebook.Technologyread more
Chinese trade negotiators suddenly canceled a visit to meet U.S. farmers after they wrapped up trade talks in Washington this week.Marketsread more
Blackstone Executive Vice Chairman Tony James says he's less optimistic now than before that the U.S.-China trade war could be resolved, but even a smaller deal could help...World Economyread more
Progress on trade talks will determine how far market will move above new highs.Trader Talk with Bob Pisaniread more
(Updates shares, adds analysts' comment, details)
Sept 3 (Reuters) - U.S. oil and gas producer Concho Resources Inc said on Tuesday it would sell a portion of its New Mexico assets for $925 million to KKR-backed Spur Energy Partners LLC and plans to use the money to lower its debt and buyback shares.
The deal is the latest in the sector as oil and gas producers have been divesting non-core assets amid investor pressure to shore up their cash reserves for buybacks and dividends.
Concho, which operates in the prolific Permian basin's Delaware and Midland areas, had taken an impairment charge of $868 million on the New Mexico assets in the second quarter and reported profit below analysts' estimates.
The company, the top oil producer in New Mexico, also said in a post earnings conference call in August that it did not plan to allocate capital to the assets for the next five years.
MUFG Securities Americas analyst Michael McAllister said while the sale isn't a "game changer" for Concho, it was a good deal as the company wasn't going to put much money into its New Mexico assets for a few years.
The assets, a narrow strip of about 100,000 gross acres bordering Concho's operations in the Delaware basin, produce about 25,000 barrels of oil equivalent per day (boepd), the company said in a statement.
Analysts at Capital One Securities said the offer price was "solid", adding that such non-core property sales would help the lower the company's cash operating expense, currently at $9.83 per barrel of oil equivalent.
The proceeds from the deal will be used to pay down debt and initiate the share repurchase program of up to $1.5 billion, the company said.
However, analysts at SunTrust Robinson Humphrey said Concho would need to show clear progress in its targeted cost goals before "truly regaining credibility with the Street" and questioned if the sale was the optimal longer term strategy.
The company's stock has already fallen more than 25% since it missed profit estimates for the third time in a row on July 31, leading to several brokerage cutting their price targets.
Shares of Concho were down 2.4% at $71.44 amid a broader sell off in energy stocks as oil prices tumbled on rising OPEC and Russian oil output as well as the protracted U.S.-China trade dispute.
RBC Richardson Barr served as financial adviser to Concho on the sale, expected to close in November. (Reporting by Shanti S Nair and Debroop Roy in Bengaluru; Editing by Arun Koyyur and Shinjini Ganguli)