Concho Resources Earnings Beat With Permian Shale Production Higher

Independent oil and gas company Concho Resources reported better than expected third quarter earnings Tuesday. $CXO is the biggest Permian Basin pure-play company in terms of unconventional oil and gas production after its takeover of RSP Permian.

Independent oil and gas company Concho Resources reported better than expected third quarter earnings Tuesday. $CXO is the biggest Permian Basin pure-play company in terms of unconventional oil and gas production after its takeover of RSP Permian.

Concho Resources Inc NYSE: CXO Reported Earnings After Close Tuesday

$1.42 Beat $1.16 EPS AND $1.19B billion beat $1.08 billion in revenue 

Earnings

Concho Resources (CXO) reported third quarter earnings of $1.42 per share on revenue of $1.19B beating with expected earnings of $1.16 per share, which represents a year-over-year change of +157.8%. Revenues  beat the expected $1.08 billion, up 72.9% from the year-ago quarter.

Concho Resources Inc NYSE: CXO

Market Reaction After hours $138.00 +2.25 (1.66%)

Highlights

  • › Total production of 287 MBoepd above the high end of guidance
  • › Oil production 185 MBopd
  • › Advancing large-scale projects
  • › Strong cash margin reflects cost control
  • › Cash flow from operations exceeded capital investment, excluding acquisitions
  • › Net loss of $199mm, or $1.05 per diluted share; adjusted net income of $269mm, or $1.42 per diluted share
  • › EBITDAX of $829mm
  • Maintaining Strong Balance Sheet › At September 30, 2018, 1.2x debt-to-annualized EBITDAX
  • › Investment-grade credit ratings

CXO Q3 Highlights

In the second quarter of 2018 Concho Resources produced 229,000 boe per day, a gain of 24% on a year-over-year basis.  CXO output was 62.5% crude oil with the balance in natural gas.

Including RSP Permian’s output the second quarter production increases to 296,000 boe per day.Concho Resources’ closest rival is Pioneer Natural Resources (PXD) which produced 280,000 boe per day from the Permian Basin from continuing assets (272,000 boepd net production).

Concho Resources is operating 32 rigs in the Permian for drilling horizontal wells. Pioneer Natural Resources is operating up to 24 rigs. 

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About Concho Resources

Concho Resources Inc is an independent oil and natural gas company engaged in the acquisition, development and exploration of oil and natural gas properties. The Company’s operations are focused in the Permian Basin of Southeast New Mexico and West Texas in the United States. Concho Resources has become the biggest Permian Basin pure-play company in terms of unconventional oil and gas production after it completed its takeover of RSP Permian in July. 2018.

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