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Wunderlich Securities reiterates its Buy rating and price target of $130 on Concho Resources
CXO as the company prepares to acquire $1 billion worth of assets in the Permian.
Wunderlich Securities says, "Concho Resources (CXO) announced on May 13 2012, that it has entered into a definitive agreement to acquire all the oil and natural gas assets of Three Rivers
Operating Company for $1.0 billion in cash. CXO is already a big player in the Permian and the deal will add more than 200,000 net acres and 1,480 drillable locations to CXO's existing asset base. The acquisition is expected to close in July 2012. The deal appears to be accretive to earnings, cash flow and net asset value (NAV), according to our preliminary analysis. We reiterate our Buy on this
Permian power house."
CXO closed at $89.17 on Friday.
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Posted In: Analyst ColorPrice TargetReiterationPre-Market OutlookAnalyst RatingsWunderlich Securities
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